Transport Authority of Maldives has revealed that the agreement with Allied Insurance Company to provide Total Loss Insurance to all the vessels registered in Maldives was signed exclusively as no other parties showed interest in the project.
Transport Authority contracted Allied Insurance to provide marine insurance, signing the contract – Provision of Marine Hull Insurance on August 2016.
In accordance with the changes made in the Marine Insurance Policy by the authority, only Allied Insurance Company has been contracted to provide Hull and Machinery Policy, which would be made compulsory for all marine vessels starting from this year.
Hull Insurance is insurance on vessels against risks connected with its navigational operations. It covers damages to the boat, machineries and equipment. This policy consists of Total Loss cover which is mandated by Transport Authority along with Full cover which is optional. The two covers help to recover the loss or damages caused to vessels’ hull and machinery during their operation within the specified trading limits. The total loss cover covers Total loss of the vessel injured against some perils in addition to salvage while the Full cover covers partial and Total loss (Actual total loss and Constructive total loss) of the vessel injured, in addition to salvage.
The transport authority has made it a mandatory policy for all the marine vessels to be insured under Total Loss Cover policy.