MOL Comfort sinking insurers face US$300 million - $400 million claims
CARGO insurers face estimated claims of US$300 million to $400 million after the 8,110-TEU MOL Comfort split in two with the stern section sinking in June in the Indian ocean while the forward section under tow caught fire and sank in July off Yemen.
The estimate, reported by London's Insurance Day, is based on the average value of a container's contents at $50,000, but then increases on the Asia-Europe route as boxes hold consumer electronics and high-value clothing bound for western markets, said the report.
Also, contents are insured at sale price rather than cost. Indeed, one cargo insurer told Insurance Day journal that these containers will often be insured for between $50,000 and $1 million each.
MOL also had a $66 million hull and machinery policy in place for the vessel, with Mitsui Sumitomo holding a 77 per cent share, Tokio Marine 20 per cent and the final three per cent placed with Sompo.
An additional increased value policy of $17 million was placed in the London insurance market by broker Miller Insurance Services. This policy was led by QBE's Lloyd's syndicate 1036, also known as the O'Farrell syndicate, said the report.
Insurers in Japan and London have been hit with claims though Japanese underwriters face the heaviest blow.
CARGO insurers face estimated claims of US$300 million to $400 million after the 8,110-TEU MOL Comfort split in two with the stern section sinking in June in the Indian ocean while the forward section under tow caught fire and sank in July off Yemen.
The estimate, reported by London's Insurance Day, is based on the average value of a container's contents at $50,000, but then increases on the Asia-Europe route as boxes hold consumer electronics and high-value clothing bound for western markets, said the report.
Also, contents are insured at sale price rather than cost. Indeed, one cargo insurer told Insurance Day journal that these containers will often be insured for between $50,000 and $1 million each.
MOL also had a $66 million hull and machinery policy in place for the vessel, with Mitsui Sumitomo holding a 77 per cent share, Tokio Marine 20 per cent and the final three per cent placed with Sompo.
An additional increased value policy of $17 million was placed in the London insurance market by broker Miller Insurance Services. This policy was led by QBE's Lloyd's syndicate 1036, also known as the O'Farrell syndicate, said the report.
Insurers in Japan and London have been hit with claims though Japanese underwriters face the heaviest blow.
