Tagged: cruise, swine flu, trade disruption

The cruise operator offered all passengers a 75% reimbursement, 25% credit for a future P&O cruise and AUD100 onboard credit as a gesture of goodwill.

There exists a number of laws and directives regarding cruise passenger compensation, in addition to the terms and conditions of individual operators.  However, there is no guarantee that in the case of communicable diseases, cruise operators’ P&I insurance will step in to cover the cost of compensation and it is usually left to the discretion of the Club.

Trade Disruption Insurance (TDI) for the cruise and passenger vessel industry does exist and responds in four ways:

1.       Loss of Revenue

2.       Additional costs and expenses – to cover the costs (such as substitute charter hire costs) incurred to get passengers to their intended destination following a casualty, for example

3.       Contractual penalties – to pay compensation to passengers where tickets are sold subject to the operator’s Fair Trading Charter or within the EU Directive on Passenger Compensation.

4.       Extraordinary costs – for example, to cover the costs of a new marketing campaign to rebuild customer confidence following a breakdown or illness

There is a significant number of perils covered by TDI, including fire or explosion on land, extraordinary weather, earthquake, heave, landslip, subsidence or volcanic eruption, contact with aircraft, helicopters of similar objects, emergency port closures, ITC Hull and Machinery perils (these can be substituted with Norwegian, Finnish or American hull plans), abnormal obstruction of a berth, master’s refusal, acts of piracy, rescuing of refugees, the imposition of travel restrictions, border closure, expropriation / confiscation, arrest or restraint under quarantine regulations, infectious diseases or poisoning on board, illness, death or injury, discovery of stowaways, detention following actual or alleged pollution, drug delay, oil or chemical pollution, accident in transit, and blocking and trapping.

For further information about TDI for the cruise and passenger vessel industry please contact FP Marine Risks.

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