Pride
of America claim will be paid in full |
Insurers led by Basler Securitas
in Bremen have agreed to pay in full the estimated E150m ($ 178m) claim on the
newbuilding Pride of America, Lloyd's List understands . |
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The nearly-completed 72,000 gt
Norwegian Cruise Line vessel sank in the early hours of January 14 while at the
fitting-out quay of the Bremerhaven shipyard Lloyd Werft. |
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Three decks were under water -
including the diesel-electric propulsion system. The cause of the sinking has
not yet been established. |
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The vessel was later lifted by
Dutch operator Smit. The Pride of America was built from a half-completed hull
that came from the US. |
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The shipyard had to file for
protection from creditors as a result of the accident and has been operating
under a receiver since then. Lloyd Werft refused to comment yesterday on the
insurance payment and said a statement would be made tomorrow. |
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The owner NCL America said that
it had agreed a new delivery date for the Pride of America for June 6, 2005.
The ship was originally scheduled for delivery at the end of April 2004. |
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"The repairs will be
extensive and will be fully covered by the settlement reached with the
insurers," NCL America said. The completion work represented a
continuation of the contractual arrangements already in place between NCL and
Lloyd Werft, the owner said. "NCL will fund the completion works as they
are carried out and the total cost of the ship to NCL once delivered will not
be materially different than if the January incident had not occurred." |
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The $ 380m conversion job was
insured under a conversion policy for $ 300m, including delay and delivery
cover. The risk is being led by the German market holding 50% with
participation of London and other international insurers insuring the rest. |
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In the German consortium,
Basler Securitas in Bremen is the leading insurer, with Allianz and most other
German companies still doing hull work participating. |
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Allianz is said to carry below
10% of the risk. |
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The Bremerhaven sinking of the
Pride of Americais the latest setback in a series of major disasters hitting
insurers covering shipyards. |
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In November 2002, a fire at
Mitsubishi yard in Nagasaki hit Carnival's 108,806 gt Diamond Princess,
reportedly causing $ 250m in damage. In September 2003, hurricane Maemi caused
$ 65m to $ 75m in damage to yards. |
On October 17, 2003, HAL's
60,000 gt Westerdam was damaged in a fire at Fincantieri's Marghera shipyard
near Venice, with a loss of $ 50m to $ 70m, according to market estimates.
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