Uninsured Losses after Collisions to Be Recovered
A new insurance solution has been launched by the Swedish Club providing upfront cover for the uninsured losses that are expected to be recovered from a third party following a collision.
Following a serious incident at sea, shipowners can find themselves struggling to maintain cash flow, despite having a sound business and a comprehensive set of insurances.
“Collisions between vessels can prove to be costly and time-consuming, leaving owners out of pocket for substantial amounts over a long period of time,” Lars A Malm, The Swedish Club’s Director, Strategic Business Development & Client Relations, explained.
“These losses consist mainly of deductibles and loss of earnings, and can have significant cash flow implications,” Malm added.
Under the recently designed Collision Recovery Insurance (CRI), the cover is designed to pay the owner the amount expected to be recovered and this then becomes subrogated to the recovery which will normally be finalized a considerable time after the collision.