Home » Maritime » Insurance program seen by end-Mar

THE Maritime Industry Authority (Marina)expects to finalize its passenger insurance program with the Insurance Commission (IC) and ship operators by the end of the first quarter.

The approval of the program will serve as the pattern for the cargo insurance program.

Insurers accredited for the passenger component will also be the same com-panies short listed for cargo insu-rance, Marina administrator Vicente Suazo, Jr. told PortCalls.

“This is to guarantee that cargoes are insured by reliable insurers and not by fly-by-night organizations abusing shipping firms,” Suazo said.

A compulsory insurance coverage for passenger and cargo is part of Republic Act 9295 or the Domestic Shipping Development Act of 2004.

Marina has already chosen a consortium that will cover domestic vessel operators. The group is composed of 52 insurance firms pre-selected by the IC.

The new insurance program increases passenger insurance claims to P200,000 from P100,000.

It has also asked the insurance firms to provide a P450-million claims fund to be held in escrow by the Marina to guarantee that all claims are paid within five days and to ensure that all insurers are in good financial conditions to meet their obligations.

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