The war risk cover was provided by Dhaka-based Sadharan Bima Corp. and reinsured through Lloyd’s of London broker Tysers, a source at Sadharan Bima said
Sadharan Bima’s exposure was 10% with Tysers covering the remaining 90%
Insurance premiums have soared by over 100% for voyages to the region since the war started. Insurers are watching closely for more claims that will ultimately increase costs further
Dhaka:
State-owned Bangladesh Shipping Corp. is seeking $22.4 million from its insurer for a cargo ship hit by a missile in March, government officials with knowledge of the talks, said, in the first major marine insurance claim from the conflict in Ukraine.
The United Nation’s shipping agency said last week it would create a safe maritime corridor for merchant ships and crews stuck in the Black Sea and Sea of Azov, although shipping industry sources expect progress to be slow.
Projectiles have hit four other vessels in recent days with one sunk.
Insurance premiums have soared by over 100% for voyages to the region since the war started. Insurers are watching closely for more claims that will ultimately increase costs further.
An explosion on the night of March 2-3 rocked the Bangladesh-flagged Banglar Samriddhi and killed a crew member. The vessel had been stuck in Olvia since Feb. 24 after Ukraine closed its ports due to Russia’s invasion.
Ukraine accused the Russian military of targeting the port facilities in a missile strike, while Russia’s embassy in Dhaka said the circumstances of the incident were “being established.” Russia denies targeting civilians or merchant ships.
Since then, the vessel’s owner BSC has launched a claim with its insurer after abandoning the ship, a senior BSC official said.
The war risk cover was provided by Dhaka-based Sadharan Bima Corp. and reinsured through Lloyd’s of London broker Tysers, a source at Sadharan Bima said.
The source added that Sadharan Bima’s exposure was 10% with Tysers covering the remaining 90%.
“Luckily there was no cargo on board when it reached Olvia port,” the official said.
“The ship was supposed to take ball clay from the port before traveling to Italy,” he said referring to a material used in making ceramics.
Tysers did not respond to requests for comment.
Reuters