The insurance responds should the vessel be detained due to actual discovery of drugs onboard including crew accommodation, due to investigations based on specific suspicions where no drugs are found, and investigations targeting drugs where there is no suspicion and no drugs are found. The insurance pays an agreed daily amount for the number of days required by client. This is often tied to the total loss trigger, normally 360 days. The daily indemnity will thus be payable every day after the exhaustion of the deductible period until the exhaustion of the policy or the vessel is declared a total loss.
Scope:
Loss of income or vessel if drugs are discovered onboard or as a consequence of vessels being detained during investigations.
Applies to:
Anyone trading in a geographical area where smuggling is a possibility – or as a global umbrella cover.
How it works:
The insurance responds should the vessel be detained due to actual discovery of drugs onboard including crew accommodation, due to investigations based on specific suspicions where no drugs are found, and investigations targeting drugs where there is no suspicion and no drugs are found. The insurance pays an agreed daily amount for the number of days required by client. This is often tied to the total loss trigger, normally 360 days. The daily indemnity will thus be payable every day after the exhaustion of the deductible period until the exhaustion of the policy or the vessel is declared a total loss.
Markets:
London, Norway.
Price Range:
Around 0.02% for Drug Total Loss - USD 2,500 to 5,000 per vessel (depending on sum insured) for Drug LOH
Self Retention:
2-5 days
Time to market:
Less than 7 days
