Cover Story

Proper Insurance Coverage & Stricter Checking - Steps in the Right Direction

Early August 2011 brought news about yet another oil spill at Mumbai coast within a time span of a year. Cargo Ship MV Rak Carrier carrying on board 60,000 tons of coal, and 30 crew members from Indonesia sunk near Mumbai coast in the afternoon. The fears of ecologists and environmentalists came true because of the oil leak and the damage it caused to the marine environment. Exactly a year ago, two ships MSC Chitra and MV Khalijia-III had collided off Mumbai. MSC Chitra sank spilling 800 metric tonnes of oil into the sea again deteriorating the marine environment.

Due to such accidents, toxic waste gets dumped nearby Indian coastline bringing various hazards along with them.  Again, the second question that arises here is who would bear the cost of cleaning the mess or of removing the wreck after the unfortunate incident has occurred? Well, anybody would obviously answer it as the insurance company. You are right, but only, to an extent. Because that is possible only in case the insurance policy papers of the vessel with whom the unfortunate incident has occurred are in place.

Just as in case of insurance policy of a person, until and unless premiums are paid at regular intervals, the policy lapses. Similarly, it was found out by Gujarat Maritime Board that though these vessels visiting Indian coast held insurance policies but these policies had lapsed due to non    payment of premiums. And if any time in future, any such incidents occurred, no benefit from insurance companies would be available leaving a lot of people in lurch.

Read More...