[ ANCHOR to Reduce Off-Hire Risks ]

The Tokio Marine&Fire Insurance Co., Ltd.(Tokyo Kaijo Kasai) has annou
nced that it will launch the marketing of a new insurance product, ANC
HOR(advanced niche cover for hull off-hire risks).
Different from the conventional marine insurance formulae which for th
e purpose of compensation require non-operation of vessels due to dama
ge, ANCHOR is designed to effect a wide range of coverage, including s
hipowners’ loss of earnings and related expenses incurred as a result
of “off-hire”(suspension of charterage) of oceangoing merchant ship
s.
The new ANCHOR coverage has the feature of compensating off hire-cause
d losses of time charterage not accompanied by vessel damage, includin
g losses from piracy. Compinsation under conventional insurance covera
ge, including loss of time insurance, is only effected subject to non-
operation of vessels due to damages resulting from disasters at sea an
d other causes. However, Tokyo Kaijo Kasai’s new insurance product AN
CHOR is designed to cover off-hire risks irrespective of vessel damage
. Under ANCHOR, therefore, off hire-caused losses of time charterage s
temming from detention of vessels by authorities due to illegal acts b
y the ship’s crew or piracy as well.
In addition, the new product covers not just off-hire losses of time c
harterage, but also expenses which shipowners have incurred in an effo
rt to shorten the period of off-hire as well as port and fuel expenses
which shipowners are forced to bear because of their vessels are off-
hired.