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Missile Hits Bangladesh’s ship: Seeks $22.4 million

Missile hits a ship of Bangladesh

A state-owned Shipping Corporation of Bangladesh is seeking $22.4 million from its insurer. The government officials said that the insurance is claimed for a cargo ship that was hit by a missile in March. The Ukrainian judge said  that this was the first claim made for marine insurance after the conflict.

Last week, the United Nations shipping agency said it would create a safe shipping corridor for merchant ships and crews stranded in the Black Sea and the Sea of Azov, despite shipping industry sources sea freight saying that progress will slow down. Bullets have hit four other ships in recent days and one has sunk.

Bangladesh seeks $22.4 million after missile hits ship in Ukraine | News24Premiums have increased by more than 100% for travel in the area since the war began. Insurers are always keeping a close eye on other claims that will eventually drive-up costs even more.

In an explosion on the night of 23 March, one of its crew-member was killed and rocked the Bangladesh-flagged Banglar Samriddhi. After the closure of Ukraine ports, the ship was stranded in Olvia on 24th February.

The military of Russia is accused by Ukraine, as they are targeting the port facilities in a missile attack. The embassy of Russia in Dhaka said that the circumstances of the incident were taken into consideration by Russia. Russia has denied the allegation, saying that they are not aiming at merchant ships or civilians.

Since then, the owner of the BSC ship has launched a complaint with their insurance company after abandoning the ship, an official of BSC said.

Bangladesh Shipping Corp seeks $22.4 mn after missile hits ship in Ukraine,  Infra News, ET Infra

The source added that Shadharan Bima’s exposure rate was 10% with Tysers covering the 90%.

Fortunately enough, there was no cargo on board when she arrived at the port of Olvia, the official said.

The ship is said to have taken marbled clay from the port before arriving in Italy, he said, referring to a material used in the production of ceramics.

Tysers did not respond to the comment.

BSC Commodore CEO Suman Mahmud Sabbir, exclusively told Reuters that it would take time to process the lawsuit.

Without moving the ship out of the war zone, the war risk insurer cannot send his adjuster to assess the amount of damage. Sabbir said that all the necessary measures were taken to protect the interests with certainty.

The marine insurance market of London has expanded to cover what it considers high-risk, waters, in the region, where the conflict is escalating and it is a threat to merchant.

Bangladesh seeks $22.4 mln after missile hits ship in Ukraine | Reuters

This is an unequivocal claim that should be made. But as per the given condition in Ukraine, it can take time to process, especially if additional documentation is required, this is said by an insurance industry source.

A deputy head of Ukraine’s Maritime Administration, Viktor Vyshnov told Reuters that the ship was anchored in port with no crew on board. The rest of the 28 members were also evacuated from Bangladesh.

He said that the captain was looking for crew members to board the ship.

Ukraine‘s Maritime Administrator confirmed that the deck was damaged when the missile hit, although it is unclear if the engines were disabled.

Vessels generally have protection and indemnity insurance, which covers liability claims, including environmental damage and personal injury. Separate hull and machinery policies cover ships against physical damage. This is beyond the scope of war risk coverage.

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Stale Hansen, president, and chief executive officer of Norwegian naval insurer Skuld, told Reuters that the ship had joined them for PandI, adding that, given the wartime circumstances of this casualty, these losses are managed by the war insurance companies.

The latest casualty from a ship at risk of war is the Liberian-flagged tanker Mercer Street, owned by Japan, damaged in a suspected drone attack off the coast of Oman, killing two crew members last July.

From 1980 to 2020, not more than ten ships over 100 tons, suffered total damage in the attacks, according to data analysis from insurance company Allianz Global Corporate and Specialty.

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