IN the wake of UK Home Secretary Theresa May's announcement that insurance cover for terrorism ransoms will shortly be banned, marine insurers are seeking clarification over future general average or kidnap and ransom policy payments to secure the release of ships and seafarers held by pirates.
Sources were quick to point out that terrorism and piracy are legally separate, and are hoping that that differentiation will be maintained. But in practice, the distinctions are not absolute and there is potential for ambiguity, notes Lloyd's List.
While full details are not known about the proposed counter-terrorism bill, Mrs May trailed some of her intentions in a speech to the Royal United Services Institute, a defense think tank.
"To put an end to uncertainty about insurance and reinsurance payments for kidnap and ransom, and to help prevent an important element of terrorist financing, the bill will amend existing law to make sure UK-based insurance firms do not provide cover for the payment of terrorist ransoms," she said.
The Islamic State group, which has declared a caliphate in parts of Syria and Iraq, raised GBP28 million (US$44 million) through ransoms last year, she said.
"A new offence will apply to ransom payments once the bill is introduced," said Mrs May.
WORLD SHIPPING
28 November 2014 - 12:25
Insurers in a quandary over cover for payment of pirate ransoms
IN the wake of UK Home Secretary Theresa May's announcement that insurance cover for terrorism ransoms will shortly be banned, marine insurers are seeking clarification over future general average or kidnap and ransom policy payments to secure the release of ships and seafarers held by pirates.
WORLD SHIPPING
28 November 2014 - 12:25
Insurers in a quandary over cover for payment of pirate ransoms
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