Insurance Implications Following Vessel Seizure in Strait of Hormuz
The ramifications of recent vessel seizures near the Strait of Hormuz in the Persian/Arabian Gulf are considerable. The Strait of Hormuz is 96 miles long and at its narrowest 21 miles (39 km) wide. Yet is vital for the world's oil and gas to pass through it — carried on maritime tankers.
Owners/operators of vessels, or owners of the cargoes, may wonder whether their marine insurance protects them in such situations. The answer is not straightforward.
Cover offered by insurers for such risks needs to be carefully examined, to see what exactly is covered and what remains excluded.
- Unlawful holding of vessel without physical loss or damage
- Traditional marine war and strike policies would normally not respond to any delay or business interruption costs incurred.
- Additional coverage against lost earnings or loss of hire of vessels
- These policies might not respond where a vessel is seized, but is undamaged, unless it has been specifically pre-agreed.
Download our Adviser report to find out the insurance implications following the “Stena Impero” vessel seizure in the Strait of Hormuz.