We have previously written about the need for the insurance industry to respond to the requirements of shipowners, charterers and cargo interests in the face of the risk of nuclear contamination.

Lloyd’s syndicate, Hiscox, recently took a step in the right direction by announcing the launch of their Crew Radiation Insurance.

This new cover has been designed in response to the Fukushima nuclear radiation leak and is available to shipowners, charterers and managers with coverage that is otherwise excluded by the P&I Clubs.

The policy comes in two parts: Section 1 is personal accident cover for crew if they become ill following exposure to radiation.  Section 2 effectively sits behind Section 1 and covers the insured’s legal liability were a claim to be brought against the vessel owner / charterer by a crewman for damages or compensation following illness or death as a result of exposure to radiation.  Section 2 is worded as a write-back to the P&I Club nuclear risks exclusion thereby offering seamless P&I cover.

Hiscox say that there are two further benefits to its Crew Radiation policy.  Firstly, coverage is on a worldwide basis and is not restricted to Japan or Japanese territorial waters.  Secondly, coverage is not limited to radiation from nuclear installations.  It also includes the potential radiation risks from the contaminating properties of any radioactive matter, for example contaminated cargoes or containers.

We hope to see more marine insurers moving into this area.  In the meantime, if you are a shipowner, charterer or manager and wish to discuss this particular cover, please contact your usual FP broker or get in touch with your nearest office.

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