War risk insurer extends piracy zone

War risk insurer extends piracy zone    The Hellenic War Risks Club said Tuesday it has decided to keep general premium rates for 2010 the same as those in 2009, while it is extending the areas requiring additional premiums and offering extra cover in relation to piracy.
   The maritime insurer said war risks cover will remain at 0.01205 percent of the entered fleet value, with all members receiving at least 20 percent commission on the gross rate. The club will continue to operate a sliding scale of additional commissions, ranging from a further 5 percent for fleets valued at up to $100 million (25 percent in total) to an extra 30 percent for fleets with more than $1 billion entered value (50 percent in total).
   The club also said it is extending the 'additional premium' area around the East Coast of Somalia from its current 600 miles to an area nearly touching Madagascar to the south and the Seychelles to the east.
   'Attacks have been taking place further and further from the coast,' the club said. 'One entered ship was attacked more than 1,000 nautical miles away and two more than 700 miles into the Indian Ocean.'
   Meanwhile, the club will continue to offer optional insurance for hire lost as a result of war risk damage. Members will also have the option of extended loss of hire insurance that covers hire lost if a ship is seized by pirates, even if the ship has not been damaged. The new loss-of-hire insurance will be priced at 0.01205 percent of the sum insured for annual cover.
   Membership now stands at about 2,300 ships, which represents a marginal increase on a year ago. Total entered value is around $88 billion. The Hellenic Club insures about 70 percent of the Greek-controlled fleet for war risks.