Cruise and Passenger Vessels
This cover has been designed specifically for the needs of operators of cruise ships and passenger vessels. These types of vessels are often more exposed to non-hull and machinery perils leading to loss of earnings for the operator.
What are the benefits of purchasing TDI cover compared with loss of hire cover?
A traditional loss of hire policy covers owners in respect of delays arising from standard marine perils under a hull and machinery policy. The Transmarine TDI policy not only include this, but goes beyond and compensates an assured in cases where there is no defect of the vessel, but delays occur due to external factors such as the emergency closure of the port or natural disasters affecting access to the port.
The Transmarine TDI for cruise and passenger vessels includes protection against up to 23 perils, from breakdown of machinery to port closure.
Not only can an assured recover their net loss of earnings for cancelled cruises, but they can also recover costs associated with the repatriation of passengers who have yet to board the vessel. This extended cover falls under Additional Costs and Expenses, the terms can be further extended to cover Contractual Penalties suffered by the assured.
By way of illustration, a traditional loss of hire policy would not generally cover the following scenarios:
- Cancellation of a cruise due to sickness of passengers and crew on board the insured vessel.
- Extraordinary weather affecting the insured vessel’s itinerary.
- An earthquake or volcanic eruption in a destination that is a key part of an itinerary, may result in cancelled cruises and refunds to passengers.
In the above scenarios Transmarine’s cover indemnifies the assured for the trade disruption arising from the incident. Our comprehensive cover can be relied upon to support passenger vessel owners and operators in times of crisis.
Diversity of vessels covered
Transmarine provides Trade Disruption Insurance cover for a wide variety of passenger vessels including river cruise operations, ferries, ocean going cruise and expedition ships.
Understanding your business
We understand the needs of our assureds and in particular their cash flow requirements. Our cover seeks to minimise those cash flow risks by providing substitute income for periods when the vessel is unable to operate.
Up to USD 7.5 Million
We can provide a limit of liability up to USD 7.5 million for TDI cover.
The excess and policy terms are structured to suit the assured’s individual needs.
Hull & Machinery Perils
This is the cover you would expect to find under a traditional loss of hire policy and responds to a vessel’s loss of earnings following the occurrence of a hull and machinery incident.
- an engine breakdown
- collision with another vessel
- the insured ship running aground
- rudder or propellor damage
- fire or explosion on board the insured ship
These relates to incidents occurring on board the insured vessel or delays arising from the insured vessel.
Crew or passenger illness or a fatality on board could lead to the vessel being diverted from its intended itinerary. This is particularly pertinent for vessels operating in more remote area.
Infections can quickly spread through air conditioning or water supply systems and cruise operators know to their cost that this can result in several days of trade disruption often leading to cancellation of the subsequent voyage.
The arrest or detainment of a vessel under quarantine regulations will inevitably lead to a loss of revenue.
Regretfully, there have been instances where cruises have been cancelled following a serious incident affecting passengers who are enroute to the port of embarkation.
Severe delays in port and additional costs can be incurred as a consequence of stowaways being found on board.
Delays can be significant whilst an authority investigates a pollution incident, which is alleged to have emanated from the insured vessel.
Authorities across the world are clamping down on illegal drug imports; an innocent operator could end up with lengthy delays whilst the insured vessel is inspected or detained.
If the master of the insured vessel considers that entering a particular port might put the vessel in danger this could result in delays to the vessel’s schedule.
In the Mediterranean this has become an all too familiar event and delays caused by a diversion to rescue refugees or other life-saving operations could result in loss of revenue to the assured.
These relates to incidents occurring shoreside or delays arising shoreside.
A fire at a passenger embarkation terminal could result in the cancellation of a cruise whilst alternative arrangements are made.
A cruise schedule could be cancelled following a serious volcanic eruption or other natural disaster in or near the port of destination.
By way of illustration, this could be following an oil spillage leading to the closure of the port whilst clean-up operations take place.
The obstruction at a berth at a key embarkation port may result in the inability to embark passengers and the subsequent cancellation of the cruise.
Severe and unseasonal weather conditions could result in a cruise being cancelled and a vessel's tight schedule being disrupted.
Delays suffered by the insured vessel, which are caused by acts of piracy.
This category of political peril would be particularly relevant to cruise vessels operating in politically sensitive areas.
Delays arising from the imposition of import or export controls in any country in which cargo is to be loaded on board the insured vessel.
The closure of a port or waterway may occur if climate activists blockade a port, this may result in the vessel having to deviate and incur additional costs when embarking or disembarking passengers.
We have a global network of external correspondents and suppliers that can assist in dealing with any claim or casualty. We have access to surveyors, loss adjusters and maritime experts and professionals who can be called upon when required depending on the nature of the matter.
Our offices in London, Dubai and Shanghai who provide “round-the-clock” assistance for major casualties where time is of the essence.