Insurers bailing out on stranded ship

2012-05-11 11:29
Cape Town - The insurers of a cargo ship stranded in False Bay, Cape Town, intend to pull their cover for wreck removal and oil pollution at the end of May, it was reported on Friday.

The Cape Times reported that without the insurer Swedish Club's protection and indemnity cover, it was unclear who would foot the bill if something happened to the ship, Panos Earth.

The SA Maritime Safety Authority (Samsa) gave the ship permission to dock in the environmentally-sensitive bay after she experienced engine failure while sailing from Venezuela to China with a cargo of iron ore.

The permission was given on condition the ship was insured and that a Smit Amandla tug was on standby.

Samsa regional manager Dave Colly told the newspaper: "We've been caught out. They [insurers] came to us saying: 'Please can the ship come in to be repaired'. The owner never approached us. Now their risk has been taken care of. Now they're going to be on Samsa's blacklist."

The insurance company's John Owen said underwriters were not in a position to fund commercial operations, and many of the owner's problems were of a "commercial nature".

Read more on:    cape town  |  maritime

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Partner Content
Travel Dreams? Where would you rather be right now?

Partnered: Whether you're missing family overseas, dreaming of family adventures or romantic hideaways we all have that one place we'd rather be right now - but have you thought about the best way to get there?


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.