Swedish Club has introduced collision recovery insurance (CRI), which it said would help shipowners suffering cash-flow problems following a major incident.
The Club noted that shipowners could find themselves struggling to maintain cash flow following a serious incident, despite having a sound business and a comprehensive set of insurances. It said that CRI would provide upfront cover for uninsured losses that are expected to be recovered from a third party following a collision.
“Collisions between vessels can prove to be costly and time consuming, leaving owners out of pocket for substantial amounts over a long period of time,” said Lars A Malm, Swedish Club director, Strategic Business Development & Client Relations, adding that “these losses consist mainly of deductibles and loss of earnings, and can have significant cash flow implications.”
CRI is available to any member entered for H&M Lead with the Club. The Club’s claims handlers will manage and adjust the claim in-house. Under CRI, the cover is designed to pay the owner the amount expected to be recovered, and this then becomes subrogated to the recovery, which is normally finalized a considerable time after the collision.