More insurers cancel certain war risk cover in Red Sea region

Global marine insurers have begun cancelling certain war risk cover for vessels operating in specified parts of the Red Sea, Gulf of Aden and Indian Ocean.

IMAGE: Cargo and tanker vessel activity in Red Sea and Hormuz regions on 12 August. MarineTraffic

Following ⁠Skuld, more marine insurers, including UK P&I, London P&I, GARD and NorthStandard, have issued statements cancelling war risk covers for “fixed premium assureds” in specified waters across the southern Red Sea, Gulf of Aden and parts of the Indian Ocean.

Coastal waters up to 12 nautical miles offshore are generally excluded from the cancellation, although the exemption does not apply to the Bab el-Mandeb Traffic Separation Scheme, the affected Saudi Arabian Red Sea coast, or the Yemeni coast.

The cancellation will take effect from 00:01 hours GMT on 16 August and includes owners, charterers and other optional covers.

The notice does not affect mutual protection and indemnity (P&I) and freight, demurrage and defence (FD&D) cover or Excess War Risks cover provided to assureds with mutual P&I cover.

London P&I and Skuld will assess buy-back arrangements to reinstate the affected cover. Gard plans to extend its existing buy-back option to include the expanded areas.

By Konica Bhatt

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