Sources in the insurance industry in the Eastern Province say they have received compensation demands for “damage” to insured assets aboard recently-hijacked sea vessels. The sources refused to reveal the nature of the damaged goods or the number of demands and said that the final decision on the validity of the claims would come after contracts have been scrutinized. The sources also expect local insurance companies to receive letters from reinsurance companies regarding the raising of insurance fees on war or piracy insurance policies in an attempt to avoid projected losses. Vessels with insured shipments often pass through international waters near Somalia, increasing their vulnerability to piracy. Some companies are said to be taking “practical steps” as to deal with the new threats to international commerce.
