Marsh Gets Cover For Yemen Shipping

NU Online News Service, Aug 8, 11:57 a.m.EDT?Insurance broker Marsh said it has helped secure $150million in war coverage for shipping vessels into the ports of theRepublic of Yemen.

The New York City-based firm, part of the Marsh and McLennanCompanies, said marine war underwriters have agreed to provide upto $150 million in coverage for hull and machinery losses to anyone vessel in Yemen. Further limits are available for protectionand indemnity insurance and crew personal accident under the newmarket war cover available through Lloyd's underwriters.

Marsh said Lloyd's underwriters believe that they have found asolution that is not only innovative but also sensitive to thecommercial problems confronting the Republic of Yemen.

This facility, arranged by Marsh's Marine and Energy Practice,has been designed to encourage the return of shipping to YemeniPorts, the firm continued, following the attack on the French oiltanker Limburg by terrorists in late 2002.

As part of the agreement with underwriters, the broker said, thegovernment of Yemen is tackling the threat of terrorists tomaritime targets in their waters through the imposition ofincreased security standards and the commissioning of a fullsecurity review. The results of the review will be made availableto leading underwriters, Marsh said.

In addition, Yemen has agreed to contribute to the cost of aproportion of any claims that may arise under the facility.

Selected vessel owners may receive Yemeni assistance withmeeting the cost of their premium.

Although Marsh arranged the facility with underwriters and theYemeni government, it is open to all Lloyd's brokers with immediateeffect, according to Marsh.