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View Full Version : Just how much power do inusrance companies have?



Paul Pless
06-19-2012, 01:06 PM
Russian ship carrying attack helicopters to Syria reverses course.


Standard Club, the insurer, reportedly stopped covering any ship owned by Femco, the Russian cargo line, The Telegraph said. "We were made aware of the allegations that the Alaed was carrying munitions destined for Syria," the company said in a statement to the paper. "We have already informed the ship owner that their insurance cover ceased automatically in view of the nature of the voyage."

Peerie Maa
06-19-2012, 01:13 PM
Whether they kept the premium may shed light on your question. ;)

Canoez
06-19-2012, 01:18 PM
Russian ship carrying attack helicopters to Syria reverses course.

Reports were that it may not stop the ship from making the delivery anyway - provided they don't need to make a port-of-call before they reach Syria.

Mrleft8
06-19-2012, 01:22 PM
Try filing a claim for something that's clearly covered on your home owner's policy, but is going to cost the insurance company more than you have already paid in to them..... Then you'll see how much power they have.

ccmanuals
06-19-2012, 02:13 PM
Russia is not "giving" helicopters or any other kind of weapons to Syria. Syria is one of their principal arms customers. It's all about the money.

Bob Cleek
06-19-2012, 02:32 PM
How much power? Ask AIG! :)

I expect that the carrier's recission of coverage probably had more to do with a standard clause excluding coverage for military munitions cargo than anything else. They don't want to be insuring hulls that are intentionally "going in harm's way." They learned their lesson with the Lusitania, or so some believe.

Andrew Craig-Bennett
06-19-2012, 02:54 PM
Perhaps I may comment here? I used to work for Charles Taylor and Co. PLC, the Managers of the Standard Steamship Owners Protection and Indemnity Association (Bermuda) Ltd, aka the Standard P&I Club, who are the insurers concerned here.

Insurers have negligible power; the power comes from international conventions which require ships to carry third party insurance, aka, in shipping parlance, "P&I cover", and the recent discovery that financial sanctions extend to insurance.

Uncle Sam has leaned on John Bull, who has leaned on Charles Taylor and Co. (no relation to the dictator of Liberia - this Charles Taylor was a coal merchant in Victorian South Shields...)

There is a bigger issue of the same type - the application of the EU sanctions to the P&I insurance of tankers carrying Iranian oil.

I can say positively that none of those involved in marine insurance are happy about these two cases. P&I Clubs are real mutuals - the members, shipowning companies, elect Directors who meet once every three months to pay the claims, on the advice of the Managers, and they are very very international. They don't want to deny coverage.

Bob - you are alluding to War Risks insurance, which is a separate matter.

Be warned that I can bore for England on these subjects.

seanz
06-19-2012, 04:44 PM
Actual power? None. Influence? Huuuuuge.

I've never worked for an insurance company, in Burmuda, or anywhere else but I am living in a house that should have been rebuilt last year except the insurance companies turned the screws on the NZ government.

skuthorp
06-19-2012, 04:46 PM
"Be warned that I can bore for England on these subjects."
So how come you're not on the team this summer?:d

johnw
06-19-2012, 05:33 PM
"Be warned that I can bore for England on these subjects."
So how come you're not on the team this summer?:d

For the boring test?