Napoli disaster serves as a wake-up call

JOY ORLEK THE RECENT MSC Napoli disaster has served as a marine insurance wake-up call for the industry. It underscores the fact that major disasters at sea do happen, says marine insurance specialist Clive Suter of Cape Town-based JPS Marine, and raises several important questions: œ In the absence of marine insurance cover what level of gout of pocketh contribution might the shipper have to make towards salvage costs or general average? œ Is there gautomatich marine insurance on every insured shipment prior to arrival at destination? œ Is the insured value of the goods sufficient to cover all our potential losses? œ Is the cover sufficient in extent? œ Has the shipper thought about the consequences of any loss of profits or trade disruption following such a casualty? gThese are all important questions and proper care should be taken to explain to clients what their policies cover and how they work.h Suter has carved a niche in the Western Cape marine insurance market, and while a large portion of his business involves the fruit industry he will tackle any risk involving the movement of goods by whatever mode of transport. gIncreased traffic from the Western Cape into West Africa has seen the development of new growth areas,h says Suter, who expects the trend to continue. He believes that long-term personal relationships are crucial, particularly in this industry, allowing for a firm commitment from insurers through good times and bad over the long haul. gWhile current marine cargo insurance rates remain relatively soft, changes for the sake of shaving off a point or two now may result in disappointment later should the tide turn when increased levels of rating required then prove onerous.h