Marine War underwriters have agreed to provide up to $150m of coverage for hull and machinery losses to any one vessel in Yemen, with further limits available for P&I and crew personal accident, under a new market war cover, led at Lloyd's.
The facility, arranged by Marsh's Marine & Energy Practice in London, it is hoped will encourage the return of shipping to Yemeni ports, following the attack on the 'Limburg' by terrorists in late 2002.
As part of the agreement, the government of the Republic of Yemen will enforce stricter security standards and will commission a full security review, in an effort to tackle the terrorist threat to maritime targets. The results of the review will be made available to leading underwriters. The government has also agreed to contribute to the cost of a proportion of any claims that may arise under the facility and selected owners may receive Yemeni assistance with meeting the cost of their premium.
This facility is open to all Lloyd's brokers with immediate effect.
