The increase in the maximum coverage is expected to be by 4 percent over 2013 through 2014.
The latest insurance news out of Japan has been an expectation that the country will be increasing its maximum coverage for Iranian crude oil tankers by 4 percent, year over year.
This will bring the maximum available coverage for the transport of the crude to Yen 635.9 billion.
That insurance news figure is the equivalent of $7.8 billion under the most recent exchange rates that have been issued for use by the budget in 2013 to 2014 fiscal year. This increase in the maximum coverage did not come as a surprise, as many in the industry had been expecting the amount to rise within the near future.
The insurance news will officially come into effect on April 1 for the upcoming fiscal year.
It was an International Group of P&I Clubs that actually made the decision that has brought about this insurance news. It was this group that said that the maximum cover for reinsurance would be rising for the fiscal year.
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At the time of the initial announcement, the Ministries of Transport, of Land Infrastructure, and of Tourism were turned down the opportunity to make a comment on this insurance news. The ministries have withheld their comments because they have yet to actually finalize the budget that they will be presenting for the upcoming fiscal year.
Through the International Group, the maximum reinsurance cover has now been brought up to $7.67 billion for various types of perils that can be associated with tankers bringing crude from Iran to Japan. This can include oil spills to fisher claims, and even the removal of wrecks. The reason for this increase is a year over year rise worth 5 percent in the gross tonnage of its members, which has brought it to 962 million metric tons, in combination with an increase of about 30 percent in the reinsurance costs, which have been shared by the group’s members.
The Japan P&I Club, also known as the Japan Ship Owners’ Mutual Protection and Indemnity Association, has just announced their insurance news by boosting their top reinsurance cover to $9 million. This is a spike over last year’s $8 million worth 13 percent.