Kidnap and ransom
News & Insights 31 August 2020
Piracy remains a significant threat to owners whose ships transit high risk areas. In response to this threat, The Standard Club offers kidnap and ransom cover to provide assistance and peace of mind when most...
Piracy remains a significant threat to owners whose ships transit high risk areas. In response to this threat, The Standard Club offers kidnap and ransom cover to provide assistance and peace of mind when most required.
What is it?
- Our kidnap and ransom policy includes cover for:
- Ransom payments and any associated expenses
- Loss of ransom in transit
- Crew liabilities arising from acts of piracy
- The costs of independent crisis management consultants
- Loss of hire.
Normal commercial exclusions will apply. This cover is only available to members of The Standard Club UK Ltd and The Standard Club Ireland DAC.
What limits are available?
The basic limits of cover are $5m per insured event for ransom payments and associated expenses, and $2.5m per insured event for loss of hire. Higher limits can be agreed.
Advantages of this cover?
Cover provided by The Standard Club delivers club-style service at a time of crisis. Clubs are owned by and for the benefit of shipowners and we consider it beneficial that the club is centrally involved in protecting its members’ interests.
Ransom negotiations – a key dynamic in the successful resolution of piracy incidents – are coordinated by Ambrey, market leading crisis management consultants. Control Risks offer a wealth of knowledge, experience and expertise in resolving kidnap and ransom incidents. The club would also be on hand to provide all necessary support.
How do I get cover?
For more information contact your usual club representative or email email@example.com
Frequently asked questions
Can I buy this cover if I am not a member of Standard Club?
This cover is only available to members of The Standard Club UK Ltd and The Standard Club Ireland DAC.
Will there be assistance with the appointment of security companies?
The club has a list of approved security companies. If a member’s chosen provider is not on the approved list, the club can assist with the vetting of the security organisation using a specialist independent advisor. The cost of the independent advisor would be for the member’s account.
The club can provide advice and assistance on contracts with security companies for the provision of guards (both armed and unarmed) and other related issues.
Is it mandatory to comply with Best Management Practice (BMP)?
The club strongly recommends that members comply with the latest version of BMP (currently version 5) in all affected areas. Whilst it is not a condition of cover to be BMP compliant, some insurance covers may be prejudiced by a material breach of BMP which gives rise to a claim.
Is it mandatory to have armed guards on board?
It is not mandatory to employ armed guards. The decision as to whether or not to employ armed guards should be taken following a voyage-specific risk assessment and made with reference to BMP, IMO guidelines and other relevant information.
Do I need to tell my war risk underwriters if I buy this cover?
Yes, as this cover may respond to some of the risks ordinarily covered by your war risk underwriters and a return premium may be available.
How would a kidnap and ransom incident be handled?
The club works closely with the member and Ambrey in the resolution of an incident. Your point of contact at the club would be the person who normally handles your claims.
Ambrey would organise the physical delivery of the ransom payment and related issues.
Claims would be paid by the club in the usual way.
Will it affect my P&I record if I have a claim?
Kidnap and ransom cover is separate from your main P&I cover and a claim on your kidnap and ransom policy would not affect your P&I record.
Who should I notify of a kidnap and ransom incident?
You should inform Ambrey immediately, their 24-hour emergency number is +44 (0)20 3553 2240.