SCR and MUSC Launch Vessel Shield to Solve Piracy Coverage Dilemma
London, UK, March 3, 2009 - Special Contingency Risks Limited (SCR), a division of Faber &
Dumas, the third-party wholesale insurance broker, and Underwater Security Consultants Limited trading as Maritime & Underwater
Security Consultants (MUSC), a leading maritime risks advisor, today announced the launch of Vessel Shield™, a
comprehensive package of services geared towards risk prevention and management in connection with acts of piracy.
Developed through the co-operation of the two companies, Vessel Shield offers insurance and risk management solutions
to what is increasingly becoming a grey area in the marine industry relating to payment of
ransoms and management of a hijack situation.
Last year, there were a total of 155 pirate attacks or hijackings in Somalian waters, particularly in
the Gulf of Aden, according to the International Maritime Bureau. In the first two months of
this year, MUSC has received reports of more than 30 attacks in the same region. This
outbreak of high-profile piracy has reignited the debate over the extent of cover for such events.
A lack of clarity in the marine market has meant that coverage responsibility is being called
"When an act of piracy occurs, who is responsible for paying the claim? Is it the vessel's
hull or war risk insurer, or the provider of kidnap & ransom cover?" said Doug Milne,
CEO of SCR. "Our new Vessel Shield package addresses this coverage dilemma by offering an insurance
product which clearly provides primary cover for acts of piracy, but also seeks to mitigate the
physical security risk as well.
"Security of vessels from acts of piracy in dangerous waters requires a co-ordinated approach," Milne added. "The
preparation, training and advice offered as part of the package of services comprised within Vessel Shield
provides a targeted answer to a marine industry problem that will go a long way to
enhance the safety and peace of mind of all those looking to protect their vessels and
Vessel Shield offers ship owners a focused and integrated solution to the problems associated with piracy, providing
expert advice and assistance before and during a transit through dangerous waters, and, should a piracy
event occur, seamless support to resolve the situation. The Vessel Shield package is based on a
three-phase risk philosophy:
- Risk Reduction through expert marine security consultancy advice to vessel owners, ship masters and crew covering both
single transit and fleet requirements
- Risk Transfer through comprehensive hijack insurance cover
- Risk Mitigation through a
team of crisis negotiators to manage all phases of a hijack event.
These combined elements deliver a specific package aimed at significantly reducing the piracy and hijacking risk faced
by ship owners. SCR and MUSC will each be responsible for delivering different and distinct elements
of the Vessel Shield services.
MUSC's Chief Executive Chris Austen said, "MUSC is delighted to lend our expertise to this world-class solution,
which combines the best marine security insurance and crisis management expertise available in the market today
into one comprehensive package. We are confident that Vessel Shield will become an essential safeguard for
ship owners the world over."
MUSC is a leading international maritime consultancy providing risk management services across international borders and in respect
of all aspects of transport, and supply chains. MUSC also has an unrivalled first-hand reputation in
anti-piracy operations and the disposal of underwater ordnance.
SCR is an insurance broker and risk management consultancy which started trading in 1976 and is the
global market leader in kidnap and ransom coverage. SCR is one of the independent companies under
the Faber & Dumas umbrella. Faber & Dumas provides specialist wholesale services in a number of
areas including property, accident & health; fine art, jewellery and specie; kidnap and ransom, bloodstock; energy;
construction; cargo and casualty lines.
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