CHARTER HIRE DEFAULT INSURANCE - CharterSEACURE
There have been a number of high profile corporate defaults in recent years that have sent shockwaves through the markets; companies such as Enron, Parmalat, Andre, Westminster and more recently Daeshin. The perceived creditworthiness of all these companies has been beyond question immediately prior to default. Historically, a widening difference between long term charter rates and spot rates has led to a degree of uncertainty over charterers’ ability to fulfill their obligations, particularly if they have insufficiently hedged their market positions. CharterSEACURE offers shipowners and their shareholders certainty with respect to their long term charter income by providing exclusive access to one of the world’s leading credit insurers and a breadth of cover thus far unrivalled in the shipping sector. CharterSEACURE has been designed to satisfy the requirements of good corporate governance within those shipping companies that are focused on minimising the impact of a potentially volatile market.
Scope of the insurance cover
Seacurus has recognised that the scope of cover must be precisely tailored to the demands of the Policyholder while operating in a highly competitive commercial environment. CharterSEACURE therefore covers the following (subject to policy limits):
- The amount of any hire due under the Charterparty that remains unpaid within the agreed indemnification period, in excess of a pre-determined deductible
- The cost of laying up the vessel after termination of the Charterparty and prior to re-chartering the vessel
- The amount of any shortfall in the hire rate when the vessel is re-chartered
The policy will also cover, in proportion to the insured indemnity, the costs and expenses incurred as a result of the necessary:
- undertaking of legal proceedings to mitigate a loss resulting from a default in payment of hire and/or
- pursuit of an arbitration award in order to obtain recoveries from defaulting charterers
For more information on this specialist credit default insurance please contact us.
CharterSEACURE - Info Sheet
CharterSEACURE - Risk Transfer Illustration
CharterSEACURE - Q&A
CharterSEACURE - Request a Quote
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TIME CHARTER CANCELLATION INSURANCE - SEACURE60
What is SEACURE 60 – Time Charter Cancellation Insurance?
SEACURE 60 is a time charter non-performance insurance policy. The policy indemnifies the insured for any shortfall in revenue between the original charter rate and the market rate at re-fixture following cancellation of the original charter. The policy is triggered if the charterer invokes the charterparty cancellation clause for non-performance following, physical loss or damage to the vessel. SEACURE 60 is applicable to all vessels on long term time charter, however, it is of particular relevance to larger container vessels where standard charterparty cancellation clauses may be invoked if the vessel remains out of service for more than 60 days after the date of the loss event.
Why buy the SEACURE 60?
The shipping industry has recently enjoyed a boom that has seen many vessels fixed on long term time charters at unprecedented rates of daily hire. Shipyards and repair berths are congested with new buildings and ship conversions. Waiting times for ship repair are increasing giving rise to a greater risk of charterparty cancellation for non-performance. SEACURE 60 protects the anticipated revenues from time charters impacted by the cancellation of the charterparty due to protracted repair of the vessel.
SEACURE60 - Info Sheet
SEACURE60 - Q&A
SEACURE60 - Request a Quote
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THE MARINE PROFESSIONALS’ DETENTION AND KIDNAP FOR RANSOM INSURANCE - ProSEACURE
By marine professional we mean an individual or group of marine lawyers, surveyors, engineers, loss adjusters, naval architects, consultants, contractors, or marine superintendents working globally for marine clients in a variety of overseas jurisdictions.
Why do you need ProSEACURE?
The marine professional is frequently instructed to represent their company and/or client’s interests in ever increasingly difficult jurisdictions. Incidence of violent crime, extortion and commercially or politically motivated detention are real risks faced by the modern day marine professional. ProSEACURE provides the insured with the peace of mind that the best interests of the company and their partners, consultants or employees are protected from the adverse consequences of such attacks.
ProSEACURE - Info Sheet
ProSEACURE - Q&A
ProSEACURE - Proposal Form
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MARINE KIDNAP FOR RANSOM - CrewSEACURE
Recent unprecedented piracy activity off Somalia and continuing activity within the Malacca Straits has resulted in a growing trend of ship’s crew being held for ransom.
This modern day piratical risk has motivated Seacurus to work with established Lloyds of London non-marine Kidnap & Ransom insurers to develop a Marine Kidnap & Ransom policy of insurance.
Please, contact us for further details.
CrewSEACURE - Info Sheet
CrewSEACURE - Q & A
CrewSEACURE - Proposal Form
Related Information -
UK Parliament's House of Commons Transport Committee Report - Piracy a growing problem
Ship Management International - Kidnapping and Ransom Article
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MARINE FUEL SUPPLIER'S CREDIT INSURANCE - BunkerSEACURE
The Risk
The non-payment for marine fuels supplied on open account credit terms.
The Indemnification
The BunkerSEACURE policy will protect the Insured against the risk of non-payment by their clients for marine fuels. The trigger for non-payment is the event of Insolvency of an insured customer or protracted default. Protracted Default (or slow pay) is usually defined as occurring between 90 and 180 days after the contractual due date for payment.
The Policy
Is designed to provide true balance sheet protection, by effectively substituting an unknown and unbudgeted level of bad debt with a pre-determined and budgeted premium cost, thereby minimising the impact of bad debts on a company's bottom line. In an industry where margins are 'thin', delinquent debts can have a major impact on a company's profitability and cashflow. Furthermore, with rising oil prices, suppliers are continually being faced with extending increased levels of credit to their customers, often at levels beyond which they have hitherto been comfortable taking on their own books. By laying-off this risk to the insurer, suppliers can continue to trade with their customers with confidence and offer extended credit limits and terms of trade in the knowledge that their income stream is secured.
How does it work?
Whatever approach you decide to take, the following general rules apply:
- You will be given a policy which will provide you with agreed limits of cover for each of your buyers.
- The Policy limits can be amended either upwards or downwards during the term of the policy and will be set according to the profile of the buyer, his country of operation and general market conditions.
- Depending on the insurance structure you choose you will be given a set of procedures to follow. It may be better however, to design a structure that allows you to operate as close to your own preferred procedures as possible. Seacurus can tailor the structure to suit your requirements.
- In the event of a default or concern about a particular buyer, you will be required to contact your insurers to discuss with them the best method of collecting the debt whilst being reassured that (providing there is no dispute over quality for example) the debt will be collected either from the buyer or ultimately, the Insurers.
Financiers are generally very positive about trade credit insurance. By inclusion of the bank as loss payee, policies can be assigned directly to Financiers if necessary. This may assist in gaining the bank's approval for increased borrowing.
For more information on how BunkerSEACURE credit insurance can work for your company please access the associated product related links.
BunkerSEACURE - Info Sheet
BunkerSEACURE - Q & A
BunkerSEACURE - Proposal Form
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NON – HONOURING REFUND GUARANTEE INSURANCE
Shipbuilding contracts will ordinarily call for the shipbuilder to provide an Advance Payments Guarantee for any advance payments made by the ship-buyer. In addition, the shipbuilder is required to provide a Refund Guarantee in the event that the ship is not delivered in accordance with the contract.
Typically, in the case of Korean and Chinese yards, these guarantees are provided by recognised local banks such as KEXIM Bank or the Bank of China.
A Non – Honouring Refund Guarantee Insurance insures the ship-buyer against the risk of default by the bank or sovereign guarantor.
Seacurus can provide ship-buyers with pricing indications for Non-Honouring Refund Guarantees and are happy to receive your enquiries electronically.
Please complete the attached online proposal form and we will revert to you directly with the requested pricing indication:
Non - Honouring Refund Guarantee Insurance: Online Proposal Form
Alternatively;
If you would like to speak to us directly please Contact Us quoting “Refund Guarantee Insurance” in the title of your message and we will call you by return.
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SHIPBUILDING CREDIT RISK INSURANCE
In today’s market many of the traditional shipbuilding yards’ order books are full until 2012. Shipowners looking to secure a new build contract are forced to look further-a-field to yards in China , Vietnam , India , Poland and Croatia etc.
Often shipowners find that the yards they are contracting with are unable to secure bank or sovereign guarantees and they are forced to decide whether to proceed without adequate security in place.
In these circumstances Seacurus can place credit risk insurance on behalf of the shipowner which would provide cover for the loss of advance payments in the event of the yard’s insolvency.
To obtain a quote for this credit risk insurance underwriters will typically ask for:
- Details of the contracting yard
- Financials on the yard
- Details of the yard’s outstanding order book
- Previous history of default
- Details of the ship buyer
If you require further information on Shipbuilding Credit Risk Insurance, please Contact Us.
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SEAFARER WITNESS COSTS INSURANCE
The “criminalisation of the seafarer” continues to concern our industry. Seacurus are developing an insurance product that will safeguard the income and costs of subsistence and repatriation for seafarers that are incurred by shipowners when their employees are called as witnesses to criminal cases. Such cases are typified by the recent, "Oily Water Separator" cases in the US .
Seacurus are working with the USCG and Lloyds of London insurers on an insurance solution to protect the shipowner from the risks of escalating operational costs associated with the growing trend to detain seafarers following marine casualties, accidents and incidents.
Seacurus have also continue to advise the International Federation Ship Master’s Association (IFSMA) on insurance matters relating to the “Fair Treatment of Seafarers”.
Seacurus – Official paper IFSMA AGA 2005
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SEAFARER ABANDONMENT INSURANCE
What is seafarer abandonment?
SEAFARER abandonment has been identified by the IMO /ILO joint working group in the international guidelines (Res.930.(22)) as being characterised by the severance of ties between the shipowner and the seafarer. Abandonment is deemed to have occurred when the master of a ship has been left without the financial means to continue the ship’s operation. For example - the shipowner fails to meet his obligations for repatriation costs, crew maintenance costs and payment of outstanding remuneration.
An ongoing primary objective for Seacurus is to work with Flag and Port States to develop a workable system of financial security which will in turn protect the world’s seafarer’s from the often ruinous consequences of abandonment.
In the last 12 months many milestones have been achieved culminating in our company presentation to the IMO /ILO ad hoc working group at the IMO headquarters in September 2005.
Seacurus have always been cognisant of the legal and political complexities that arise when a vessel is abandoned.
When forming firm views on how compulsory insurance may satisfy the existing guidelines Seacurus have canvassed the views of national governments, shipowner and seafarer organisations, seafarer professional bodies and welfare organisations, vessel custodians, international regulators and Lloyds underwriters.
Seacurus are confident that an insurance solution to this long running industry problem can be developed and would welcome the opportunity to work with flag and/or port states that are similarly minded, for more information please contact us.
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OTHER SERVICES
- Policy drafting
- Ship arrest
- Ship sale and purchase
- Ship financing
- Financial credit risk insurance
- Marine insurance and reinsurance
- Claims management services
- Risk management services
- Legal services
- Consultative and advisory work with flag/port state administrations on regulatory matters
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