Tougher needs for some vessel insurers covering UAE vessels are aimed at promoting environmental safety, the UAE’s state news agency (WAM) reported, amid rising concerns over unregulated shipping.
The UAE’s energy and infrastructure ministry, in a 2 June circular, declared it would be tightening the insurance criteria for vessels that are registered under the flag for insurers that aren’t part of the leading International Group of ship insurers, famous as P&I clubs, which span 90% of the ocean-going fleet of the world.
By prioritizing stringent P&I standards, we facilitate the safety, environmental stewardship, and financial security of maritime activities, attracting many reputable investors, the advisor to the country’s Minister for Maritime Transport Affairs, Hessa Al Malek, was reportedly quoted by WAM.
WAM mentioned that the move would also lower the potential risks of oil spills and other accidents, leading to a more secure and safer marine environment.
Hundreds of “ghost” tankers that aren’t entirely regulated have associated themselves with an opaque and parallel shipping trade over the past few years, loaded with oil from nations hit by Western restrictions and sanctions, including Iran and Russia.
A Reuters investigation reflected that the number of incidents reported in 2022, including groundings, near misses, and collisions involving the vessels, reached the highest in years.
The Financial Action Task Force in 2022 (March) included the UAE on a list of jurisdictions subject to heightened monitoring, referred to as the “grey” list.
The UAE is one of the world’s largest maritime hubs. It has emerged as a primary operating location for shipping majors that lack top-tier insurance coverage or other services from the world’s biggest providers, such as safety certification.
References: Reuters, Insurance Journal, Gulf News
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