The insurance market is braced for the vessel to be declared a constructive total loss as a result of extensive damage that may well render repair economically unviable.
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.
The protection and indemnity cover of the Norman Atlantic is with the Norway based Gard club who are in for a substantial claim as they cover both passenger and crew liabilities.
The ferry is entered with Gard by Italian owner Visemar di Navigazione, but Anek Lines has cover as a charterer for the Norman Atlantic with the West of England Club. Anek insures its owned fleet for P&I risks with the UK Club.
It is too early for the fate of the vessel to be decided but the view in the insurance market is that although the Norman Atlantic is only five years old it will be a CTL.
So far no salvage contract has been agreed but Smit is understood to be talking to the owner.
The casualty also raises key questions about the safety of even modern ferries.
Only a relatively modest number of survivors were able to take to the lifeboats despite the vessel being on an even keel and not listing.
There will also be questions to be asked about fire protection standards as vehicle fires on ro-ro vessels are not uncommon.
