In a major development, the Bangladesh Shipping Corporation will get $22.48 million in insurance for an abandoned cargo ship in Ukraine. The vessel in question is Banglar Samridhhi which came under fire in a missile attack last year and had been lying in Olvia port since then.
The primary insurer of the ship, Sadharan Bima Corporation, has been negotiating with the Tysers for months, and now the reinsurer has said that they will clear the payment in foreign currency within February 2023.
The vessel under lease to Delta Corporation was supposed to carry ball clay from Olvia port to Italy. For that, the ship came to Ukraine on February 22, 2022. However, due to the Russian invasion, the ports were closed down on February 24, 2022.
The bulk carrier was stranded at the port when a missile struck it on March 2, 2022, killing one of its sailors. The crew was transported safely to Romania while the ship remained stranded at the port. Its navigation bridge was heavily damaged during the missile attack.
The Lloyd’s of London Broker Tysers is the reinsurer of the ship, which was contacted by the chief insurer Sadharan Bima Corporation when the Bangladesh Shipping Corporation filed for the insurance claim in March 2022.
Per the insurance policy, the ship would be declared a constructive loss if it can’t be rescued in a year and repairs exceed the insurance limit or the ship’s cost. Under that circumstances, the reinsurer is liable to pay the compensation, after which they will acquire the vessel. When the reinsurer sells the ship, the primary insurer will get 1% of the risk coverage.
References: TBS News, Business Fortnight