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| United India Insurance to bear JNPT loss |
| Shilpy Sinha / Mumbai Aug 11, 2010, 00:18 IST |
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With shipping channels at Jawaharlal Nehru Port Trust remaining closed for the third day, public sector insurer United India Insurance will probably have to pick up the tab for losses to the port authority.
 “Official claims have not been lodged. The policy will trigger only after the business remains interrupted for more than 72 hrs. Our surveyors are ready. It takes time to ascertain large claims,” said a senior executive at United India Insurance.
He said the port was insured for Rs 180 crore under the port package policy. The policy will take care of the damage to port equipment and liability of the port on berthing charges and loss of profit due to business interruption. A senior executive at General Insurance Corporation said there was a waiting period after which the reinsurer would be intimated on the claim size.
Business interruption insurance policy compensates the insured for the income lost during the period of restoration or the time necessary to repair or restore physical damage to the covered property.
Reports suggest MSC Chitra, operated by Mediterranean Shipping, had shed at least 400 boxes of hazardous chemicals, such as phosphatic pesticides and sodium hydroxide since its collision with MV Khalijia 3. MSC Chitra is now lying on its side in the Arabian Sea. Many of the 120-odd containers that fell in the sea are still floating, making navigation in the area difficult.
Ships are covered under two policies – hull and machinery and protection and indemnity cover. Similarly, cargo containers will be insured by different insurance companies, which take care of the claims arising from any damage to goods during transit. “These will file a notice with the port as a matter of prudence. While they will be insured under their individual policy, they can also get a share of the claim of port insurance,” said an insurance broker.
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