Amidst declining piracy incidences in the Nigerian waters and the Gulf of Guinea since February, when the Nigeria Maritime Administration and Safety Agency (NIMASA) deployed its Integrated National Security and Waterways Protection Infrastructure popularly known as the Deep Blue Project, the Director General of Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Bashir Jamoh, has expressed concern over the persisting war risk insurance on Nigerian bound cargoes, calling for its removal.
This came as it was disclosed that Nigeria’s maritime trade is to say the least threatened by the increasing war risk insurance premium now being paid by Nigeria-bound vessels. Although according Jamoh, piracy in the Nigerian waters is waning, stakeholders in the industry are worried that offshore underwriting firms still insist on very high premium to be paid by those conveying cargoes to Nigeria.
“War risk insurance is a type of insurance, which covers damage due to acts of war, including invasion, insurrection, rebellion and hijacking. Some policies also cover damage due to weapons of mass destruction. It is most commonly used in the shipping and aviation industries.
