Cabo Verde’s Council of Ministers approved a draft law regulating compulsory marine insurance, which aims to reform the entire maritime passenger and cargo transport sector, the spokesman for the meeting, the Minister of Culture and Creative Industries, announced on Tuesday in Praia.
Abraão Vicente, quoted by the Inforpress news agency, said the draft law aims to establish a set of rules for compulsory marine liability insurance to cover damage to third parties and pollution damage to coastal areas and navigable waters.
“Our approved maritime code mandated that we take out marine liability insurance to cover damage to third parties and pollution damage to coastal areas and navigable waters by national insurers,” he said, adding that Protection and Indemnity Insurance, known as P&I, was not included.
The minister explained that national insurers do not have the financial capacity to cover policies of this size, which is to say that if a ship has a hull breakdown or pollutes “there is no national insurer” that can cover the costs.
Therefore, he said, it is within this framework that marine insurance can be divided into main areas, insurance usually sold by commercial insurers, premium insurance, shipping risk coverage under a legitimate insurance contract, marine insurance, including damage and hull and machinery, carrier or shipowner protection.
This proposal, he added, aims to include Cabo Verde in the coverage of services provided by P&I, which includes the protection of shipowners in various situations, namely in cases of third party liability, such as loss and damage to cargo, personal accidents, loss of vessels, deaths or illnesses of passengers, and collision damage, among others. (Macauhub)