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The undertones of hiked insurance costs


It is too obvious whom would be the easiest scapegoats behind expensive premiums

The UK P&I Club recently issued a circular notifying of a 12.5 per cent hike on all mutual premium rates for 2022 renewal. The circulation alerted members to anticipate higher increases should they have adverse records.

Major mishaps triggered the move
The standard deductible would remain unchanged at US$15,000 per event, including fees and expenses. Any change in the cost of the International Group reinsurance programme will be passed on to the mutual members. The circular noted although the mutual model is based on the concept that all members are “in it together” through co-insure, some member clubs which supported this principle considered past track records. A source familiar with this move disclosed it was partially to protect high-performing insured parties with good claim profiles.

Industry experts noted the sums of large claims have changed significantly. They pointed out incidents such as the Wakashio grounding, the Jacksonville fire onboard the Höegh Xiamen, the increasing frequencies of fires onboard ships, and a series of incidents in which ultra large vessels struck berths or knocked down gantry cranes.

Shipowners would naturally be scrambling for more economical options. How they subsequently enforce rules in the name of minimising sea mishaps would be another question mark. Mishaps are though ideally avoided, they do happen and could stem from a plethora of reasons. However, the glaring undertone from the circular was the buck stops with the crew. If that is the intended impression, it would be outright scapegoating the very people onboard who kept our supply chains running while putting up with raw deals such as horrendous working conditions. It is now up to the shipowners to present their positions to labour unions, that are likely to be watching the employers’ treatment towards seafarers.


Crewing Online News Team
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