Ukrainian companies may be allowed to reinsure military risks for foreign vessels

UkrAgroConsult

Ukrainian insurers will be able to pay foreign companies for war risks. Such an initiative was proposed by the Ministry of Agrarian Policy and Food at a meeting of the Coordination Council last week, the press service of the ministry reported.

The proposal is due to the refusal of policyholders of the IG Club (an association representing the interests of almost 90% of the world’s insurance companies) to cover risks related to the war. Thus, from January 1, 2023, the region of Ukraine, Russia, Belarus and Moldova will not be subject to the extension or conclusion of new contracts in terms of losses/damages caused by military actions. That is, one of the three policies required for marine transportation will not be covered, namely war-related shipowner’s liability risks. Other risks will be covered unchanged.

According to the results of the discussion, the members of the Coordination Council supported the proposal of First Deputy Minister of Agrarian Policy and Food Taras Vysotskyi to address the Cabinet of Ministers with an initiative to allow Ukrainian insurance companies to pay abroad for reinsurance. Under this condition, they will be able to insure the relevant risks,” the Ministry of Agriculture and Forestry reported.

Also, at the meeting of the Coordinating Council, the improvement of the algorithm for forming a queue for inspection of the JCC was considered. In particular, it is proposed to synchronize the plans of port operators with the passage of ships in the Dardanelles and Bosphorus.

The coordination council was created to solve problematic issues in the field of development of transit potential and logistics. Its members include representatives of the Ministry of Agrarian Policy, the Ministry of Infrastructure, the Ministry of Economy, the Ministry of Finance, the Ministry of Foreign Affairs, Ukrzaliznytsia, the State Border and Border Service, the State Production and Consumer Service, the State Customs Service, Ukrtransbezpeka, USPA and specialized associations.

Tags: insure, Ukraine