P.M. BRIEFING : U.S. Backs War Risk Insurance

The U.S. government has underwritten war risk insurance on a commercial ship engaged in normal commercial trade for the first time since the Korean War, the shipping daily Lloyd’s List reported today.

Lloyd’s said the 40,921-ton Stonewall Jackson, owned by Waterman Steamship, is the first vessel operating commercially to take advantage of the U.S. government’s standby war risk insurance program since it became effective Aug. 29. The Maritime Administration has already issued war risk policies for 30 of the merchant vessels taken by the U.S. Military Sealift Command for operation Desert Shield in the Persian Gulf, Lloyd’s List said.

Under the program, any foreign or U.S. ship may apply to the Maritime Administration for war risk coverage provided the vessel is engaged in U.S. trade. The U.S. agency is permitted to quote rates when the rates and conditions being offered in the commercial insurance market are considered unfair and unreasonable.