UAE to tighten insurance cover for ships flying its flag

UAE to tighten insurance cover for ships flying its flag

DUBAI: The UAE is tightening insurance requirements for vessels registered under its flag, according to a government advisory, amid growing concerns over ships sailing without top tier cover in the event of an oil spill.

Ships typically have protection and indemnity insurance which covers liability claims including environmental damage and injury. Separate hull and machinery policies cover vessels against physical damage.

About 90 percent of the world’s ocean going tonnage is covered by the 12 ship insurers that make up the International Group.

P&I insurers outside of the IG that cover UAE flagged ships will need to meet a number of requirements including providing evidence of membership of a recognized maritime related professional agency or regulatory body, the UAE’s Ministry of Energy and Infrastructure said in a June 2 advisory posted on its website.

Other requirements include providing details of the five largest settled claims or details of claims over $10 million, the advisory said, adding that applications needed to be submitted before June 30.

The advisory, which was also addressed to ship owners, said evidence would need to be shown about so-called blue cards, which cover pollution damage.

The UAE flagged fleet includes dozens of oil tankers — many of which are old — and