UAE will impose stricter insurance requirements for ships flying its flag
UAE will impose stricter insurance requirements for ships flying its flag
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Dubai: According to a government advisory, the UAE is tightening insurance requirements for ships flying its flag in response to growing concerns over ships travelling without top-tier insurance in the event of an oil spill.

The protection and indemnity insurance that ships typically carry covers liability claims, including those involving environmental injury and damage. Vessels are protected against physical damage by separate hull and machinery insurance.

The 12 ship insurers that make up the International Group insure about 90% of all ocean-going tonnage.

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The UAE's Ministry of Energy and Infrastructure stated in a statement that P&I insurers outside of the IG that cover UAE-flagged ships must adhere to a number of requirements, including providing proof of membership in a recognised maritime-related professional agency or regulatory body.

The advisory stated that additional requirements included providing information on the five largest settled claims or information on claims worth more than $10 million. It also stated that applications needed to be submitted by June 30.

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The warning, which was also directed at ship owners, stated that proof regarding so-called blue cards, which cover pollution damage, would need to be provided.

According to shipping information on the open-source database Equasis, the UAE flagged fleet consists of over 200 offshore vessels and dozens of oil tankers, many of which are outdated.

Over the past few years, hundreds of unregulated "ghost" tankers have joined a shadowy parallel shipping trade that transports oil from nations like Russia and Iran that are subject to Western sanctions and restrictions.

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According to a Reuters investigation, the number of incidents involving these ships last year—including groundings, collisions, and near misses—was at its highest level in recent memory.

This week, sources with knowledge of the situation said that ports in China's Shandong province are demanding more specific information about oil tankers that call at their terminals and are older than 15 years.

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