Claims will initially be directed towards Anek Lines as the charterer of the 26,900-gt Norman Atlantic(built 2009) and the company that issued tickets for carriage.
Anek has time charterers cover from the West of England Club but this is crucially not a pooled risk so will not be shared with other International Group clubs or spill over into the $3bn collective reinsurance programme currently being negotiated ahead of the 20 February renewal of P&I cover.
So the incident in terms of reinsurance, if not the timing, is very different to the loss of the 114,000-gt cruiseship Costa Concordia (built 2006) in January 2012.
Reinsurers of the West of England Club are of course on risk and there is a chance the claim could spill over into the shipowners cover that Visemar di Navigazione has with Gard.
Gard issued the passenger risks ‘blue card’ for the Norman Atlantic so is the ultimate legal guarantor that compensation will be paid in the unlikely event there was a problem with Anek or the West of England Club cover.
The relationship between Anek and Visemar and any sharing of liability will also be governed by the exact terms of the charterparty.
Anek has shipowners cover from the UK Club but this does not come into play in respect of the Norman Atlantic blaze.
The Norman Atlantic incident is the first major loss to be covered under the new Passenger Liability Regulation (PLR) which came into force in Europe two years ago implementing the updated compensation provisions of the Athens Convention.
This provides strict liability cover of SDR 250,000 ($361,500) and a higher limit of SDR 400,000 ($578,400) on less onerous terms per passenger.
The PLR also sets a per vehicle limit of liability of SDR 12,700 ($18,400) and a passenger cabin luggage limit of SDR 2,250 ($3,260).
It is too early to determine the likely claim from the Norman Atlantic incident but a total insurance bill north of $100m seems entirely plausable.
There is hull and increased value cover on the vessel - which appears likely to be a constructive total loss - of $67m with insurers led by Gard also exposed to a loss of hire claim from Visemar.
Compensation near the PLR limit seems likely for bereaved families and there will also be physical injury claims from survivors.
A costly part of the bill may well be traumatic stress claims from the many passengers and crew who faced a lengthy wait for rescue on a burning storm battered ship.
TradeWinds reported yesterday that the hull of the 26,900-gt Norman Atlantic (built 2009) is insured for EUR 40m with a EUR 15m increased value policy on top making the total loss payout facing insurers some $67m.
Genoa based marine insurer Societa Italiana Assicurazioni e Riassicurazioni (SIAT) leads the cover on the ferry, writing 43% of the hull policy and 77.5% of the increased value cover.
Italian insurance giant Generali is in for 30.25% of the hull cover and Ariscom for 4.25%.
Outside Italy London based Atrium underwriting and its Lloyd’s of London syndicate 609 is in for 7.5% of hull and IV covers with Swiss Re and the Mapfre insurance group of Spain also in for 7.5% on both policies.
