Mr. Washboum estimated that 1arge container ship worth $75 milhon (40 mulion)would pay about 0.02 per cent of its worth, or $15,000, for an annual insurance policy, which would cover the vessel to make unlimited visits to the world’s safe ports for 12 months. However, the ship would have to pay the same amount for every single visit that it made to a port on the “enhanced risks” list, he told “The Times”.
Sn Lankan exporters once again may have to face insurance premium surcharges on freight as a result of this move, shipping sources said on Friday.
Initially Sn Lanka was included to the list of excluded countries by the joint war committee at Lloyds of London after the terrorist attach in the Bandaranaike International Air Port on 24th July2001. As a result, Sri Lankan exporters were charged US $150 per 20 foot container as an insurance surcharge to offset the additional insurance costs of lines.
A deposit of Sterling Pounds 50 million had to be placed by the Government of Sri Lanka and a security audit of port of Colombo had to be carried out to persuade the Lloyds of London to reduce the very high levels of additional war risk premium. When the security situation in Sri Lanka improved, the additional premium was reduced and the surcharge imposed on exporters was initially reduced and then withdrawn.
Trident, a London based company was appointed by the Government of Sri Lanka to do an external audit of the security in Sri
related perils only on 20th June 2005 resulting in shipping lines being relieved of the additional premium for Hull & machinery. However Sri Lanka continued appear in the list of war risk countries with The Joint Cargo Committee without change & the cargo importers & exporters continued to pay higher war premiums since 2001. Even after the ceasefire agreement was signed in February 2002, The Joint War Committee retained Sri Lanka under the held cover status without a break.
Due to additional insurance premium paid continuously by exporters and importers Sri Lanka continued to lose heavily financially and economically, in addition to the impact in various other ways including the coiThtry ratings by credit rating agencies while the authorities turned a blind eye.
“We have not handled this matter professionally. There were many questions even on the ISPS certification where the governments took controversial steps. Were the representatives who visited Lloyds according to this report competent and were they well informed?” asked a source from the insurance industry.
;1] Sri Lanka, Yemen, Malacca Strait stays on ‘risk’ list;0]
Additional insurance
premium, a heavy
economic, financial loss
The Lloyd’s Market Association Joint War Lankan ports and canvass Lloyds of London. Committee (JWC) in London revised its list This company was later closed under a of areas at risk for Hull, War, Strikes, cloud of controversy. Lloyds of London how- Terrorism and Related Perils as of 20 April, ever appointed their own Security 2006. Sri Lanka and Yemen have been Consultant, Rubicon to asses the security of added to the list; the port of Algiers has been the ports of Sri Lanka. Under a fresh effort removed, and the Malacca Strait stays. later the Government appointed
• Accordingo a report in “T1Ti0ieson anothar connftatLBagndi& 22nd of May, representatives of the Sn Associates, vihise assignment Lankan Government visited Lloyd’s of was abandoned by the govern- London underwriters last week to discuss ment half way, without completing, concerns that the country’s inclusion on the due to unknown reasons. list will damage trade. Clive Washboum, The Joint War Committee head of the marine division at Beazley, the removed Sri Lanka from the listing London insurer, told The Times “There was a in respect of Hull war risk and full and frank discussion about the risk and
what they’re doing from a security point of view.”

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