Through this article we would like to inform you about important changes relating to the Kidnap & Ransom (K&R) cover. The NNPC has taken out a K&R insurance with Aspen for its members. As of 29 March 2020, this insurance is renewed for one year and offers NNPC members a free cover against the financial risks of piracy.
Aspen’s K&R insurance only excludes a few areas worldwide. For the upcoming year only Yemen and Somalia are completely excluded. In addition, there are only 2 areas for which an additional premium applies: the Gulf of Guinea and the Indian Ocean/Gulf of Aden. Last year, the coordinates of these areas were exactly the same as those mentioned on the “Hull War, Piracy, Terrorism and Related Perils Listed Areas”, also known as the JWLA-024.
However, as of 29 March 2020, the excluded area in the Gulf of Guinea will be expanded and additional K&R coverage will be necessary for all transits to or through the waters north of 1°N in the Gulf of Guinea (this was previously 3°N ). This means that the waters of Cameroon, Nigeria and (a part of) Soa Tome & Principe are no longer part of the free world wide cover. To get a better understanding of this we would like to share the following illustrative map as a visual indication:
The red line shows the boundary between the worldwide cover and the excluded area. In addition to the expansion of the excluded area Aspen also increased the premium and the minimum freeboard requirements for transits to or through this areas.
As far as the excluded area in the Indian Ocean/Gulf of Aden is concerned, we can confirm that this area remains the same as listed on the JWLA-024. The premium for trips to or through this area have been adjusted and have been reduced compared to last year.
Furthermore, similar to last year, you will need to notify our Underwriting department if you are planning to make transits to or through one of the other JWLA areas in order for us to guarantee cover.
In summary, if you wish to use NNPC’s K&R cover for our members you should notify us in advance of all trips to the Gulf of Guinea and JWLA listed areas. In most cases we will be able to confirm cover within a day but for some areas we may have additional requirements such as a citadel, guards, razor wire etc. and/or charge an additional premium before we can confirm that K&R cover remains in place.
If you have any questions about these changes or would like to receive a quote for an upcoming trip through a risk area, please contact the Underwriting department at email@example.com.