BRITISH shipping minister John Hayes will discuss with his Home Office (security ministry) counterparts the issue of piracy ransoms following marine insurance concerns that a proposed new ban on paying ransoms to terrorist groups could hinder the release of captured crews and vessels.
Experts say that aspects of the counter-terrorism bill, to be unveiled soon, could be of commercial concern to insurers, especially if they find themselves having to prove that pirate groups collecting the money have no links to terrorists, reports Lloyd's List.
While terrorism and piracy are legally distinct, and the current Conservative-Liberal Democrat coalition explicitly gave the thumbs-up to piracy pay-offs as recently as 2012, some marine insurance voices have argued that the legislation could give rise to grey areas.
Ince & Co lawyer Stephen Askins, who negotiated the release of several ships hijacked by Somali pirates, said: "London is the centre of kidnap and ransom [cover], and insurers must be concerned, although those I have spoken to are being assured that this is a clarification rather than a change."
While the problem does not look insurmountable, the devil is in the detail and will require a precise form of words to make certain that piracy ransoms, typically paid from general average or on kidnap and ransom policies, can continue, he said.
Mr Hayes said he had yet to consult the Home Office, which is sponsoring the counter-terrorism bill, although some of his officials will have had conversations with their relevant opposite numbers.
"Clearly we have to have a holistic policy on counter-terrorism, but I know there are particular challenges facing maritime," he said.
"Each aspect of terrorism has its own particularities, represents its own kinds of threat, and clearly you look at each one of those threats in itself. I'm very happy to have those discussions with the Home Office."
PIRACY
02 December 2014 - 22:46
UK minister to raise pirate ransom insurance concerns with security ministry
BRITISH shipping minister John Hayes will discuss with his Home Office (security ministry) counterparts the issue of piracy ransoms following marine insurance concerns that a proposed new ban on paying ransoms to terrorist groups could hinder the release of captured crews and vessels.
PIRACY
02 December 2014 - 22:46
UK minister to raise pirate ransom insurance concerns with security ministry
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