The world’s largest marine insurer ends its client relationship with Russian Sovcomflot after the carrier was put on the sanctions list. According to WPO’s information, a clause in the contract allows for immediate termination of a contract when there is a risk of being exposed to sanctions.
Gard, the world’s largest marine insurer based in Norway, has done like its Norwegian colleague, Skuld, and exited contracts with Russian Sovcomflot, according to WPO’s information.
In contrast to Skuld, which had approximately 49 Sovcomflot ships under insurance coverage, Gard only had three in its fleet of insured vessels.
According to WPO’s information, Gard has a clause attached to its standard terms of insurance that lets the marine insurer exit a contract if there is a risk of sanctions.
In the terms of insurance, it is stipulated that the coverage can cease for one vessel or several for a member without written termination of the contract if facing sanctions, which is normal practice for the insurer.
The insurance terms state that the company can decide that the coverage should cease if a member has exposed itself or might have exposed itself or the insurer to risk of sanctions or trade restrictions in any form.
It is this clause that has entered into force in regards to the client relationship between Gard and Sovcomflot.
Vessels have disappeared from website
WPO has reached out to Gard, which states that it cannot comment on specific customers and their relationship with the insurance company.
”Gard continuously monitors the developments in Ukraine and has good systems in place to ensure that we always comply with relevant sanctions. We do not comment on individual clients but communicate directly with those affected by the situation,” a Gard spokesperson tells WPO.
When WPO spoke to Gard in the middle of March, the insurer described the situation as ”a complex and changeable situation we as a maritime insurance firm have to navigate, in which different concerns play out against each other.”
It seems now that the solution has been to terminate the contracts with the Russian tanker company.
This is evident from Gard’s own website as the vessels are no longer listed on the general list detailing which vessels indeed have coverage with Gard.
Skuld is getting rid of sanctioned Russian client Sovcomflot
