The endorsement for petro-piracy can be added to existing kidnap & ransom (K&R) cover. In addition to $1m K&R cover there is $500,000 for loss or theft of cargo, $500,000 for loss of hire, $250,000 for loss of bunkers, and $50,000 covering loss or theft of money.
"The modus operandi of South-East Asian and Gulf of Guinea criminal gangs differs from the Somalian piracy model. Ships' crews are regularly exposed to life-threatening situations as criminals take control of and ransack vessels, stealing valuable petro-chemical cargoes for commercial gain," said Denis Nifontov, head of marine K&R at Seacurus.
An aggregate of $5m of cover for a seven day voyage would have a typical premium cost of $1,250 the insurer said.
Two small tankers have been hijacked in Southeast Asian waters so far this year, in one case, the Sea Birdie, the pirates were foiled by the Malaysian authorities, in the second the Indonesian-flagged tanker Rehobot remains missing although the 14 crew have been found safe, adrift in liferafts.