IGI, UK firm offer $100m insurance cover for ship operators

 Rotimi Fashola, IGI MD

 

Nigeria Insurance giant, Industrial and General Insurance Plc (IGI), has entered into partnership with the United Kingdom-based The East of England P&I Association Limited to underwrite protection and indemnity insurance to safeguard owners and charterers of commercial ships in Nigeria against liabilities.

The partnership, which took effect from April 2013, was brokered by Integro Insurance Brokers of United Kingdom. The venture offers an overall limit of liability to the tune of $100,000,000 which is reinsured by first-class securities within the internationally acclaimed Lloyd’s Market.

Under the partnership, players in Nigeria’s maritime industry, especially ship owners and ship operators, have access to protection and indemnity insurance coverage which protects them against liabilities arising from risks such as collision with other vessels, loss of or damage to fixed and floating objects as well as pollution risks, including those caused by bunkers.

The insurance cover also protects the policyholder against liabilities for cargo, stowaways, sue and labour and legal costs, fines, wreck removal as well as illness, injury, loss of life of crew members and passengers.

Speaking on the Protection and Indemnity coverage, IGI’s Executive Director, Special Risks, Mr. Sina Elusakin, described it as part of the company’s effort to offer the requisite backing for the development of Nigeria’s maritime industry.

Elusakin said: “Concerned about the amount of foreign exchange being lost to the P&I Clubs abroad, IGI decided to put the coverage in place to reduce the hardship that ship owners go through in arranging the cover. We also want to help stem premium export and boost the Local Content initiative and the Cabotage regime of the Federal Government.”

Describing the alliance between IGI and The East of England P&I Association Limited as formidable, he urged brokers, ship owners and ship managers to take advantage of the insurance product and apply for the placement of vessels under the cover.