Baltic Ace shipwreck to cost insurers up to $60mln
The Baltic Ace cargo vessel that sank in the North Sea on Wednesday night is insured for between US$50 million and $60 million, two sources with direct knowledge of the matter said, reported Reuters.
The lead insurer for the vessel is Catlin, operator of the biggest syndicate in the Lloyd's of London market, the sources said.
As lead insurer, Catlin's share of any claim would be between 10 and 15 percent, with the remainder split between a panel of other insurers, one of the sources said. Catlin declined to comment.
As is common in the marine insurance market, the Baltic Ace's cargo of 1,400 cars, mostly Mitsubishis, is insured separately, as is any liability for environmental pollution or personal injury.
Insurance against pollution or injury is provided by the North of England Protection and Indemnity (P&I) club, one of a network of specialist marine underwriters owned by the shipping industry, two other sources said.
North of England P&I declined to comment.
At least five crew members died when the Baltic Ace sank after colliding with a container ship, the Corvus J, on Wednesday night. The Corvus J was damaged, but was able to resume its route, officials said.
The Baltic Ace shipwreck will add to an already heavy claims burden this year for the marine insurance industry, hit in January by a loss of around $1 billion, one of its biggest ever, after the Costa Concordia cruise liner ran aground off Italy.
