The United Arab Emirates is tightening regulations and requirements regarding the insurance of ships flying its flag. According to Reuters, this action follows concerns about the increasing risk of oil spills from ships that lack adequate insurance. In recent years, hundreds of 'ghost' tankers, which are not fully controlled, have joined a murky parallel shipping trade that carries oil from sanctioned countries or circumvents Western restrictions against Russia and Iran. Reuters' investigations indicate that the number of incidents last year, including grounding, collisions, or disappearances of these vessels, has reached its highest level. Ships typically have protection and indemnity insurance known as 'P&I,' which also covers environmental damage and injuries. The insurance company separately covers the hull and other parts of the ship against physical damage. About 90% of the world's ocean-going vessel capacity is covered by 12 insurance companies that form the International Group (IG). The UAE's Ministry of Energy and Infrastructure announced in a recommendation on June 2 that companies outside the IG group providing P&I insurance to UAE-flagged ships must have additional documentation, including membership in a relevant maritime professional organization recognized by regulatory bodies. Details of the five largest settled claims, or claims over $10 million, are among the prerequisites that must be submitted by June 30. The recommendation, which was also addressed to shipowners, stated that they must provide evidence of so-called 'blue cards' that confirm compensation for environmental pollution damages. UAE officials did not respond to Reuters' request for comment. According to transport data in the public database 'Equasis,' UAE-flagged ships include dozens of oil tankers, many of which are old, as well as over 200 maritime vessels typically used in oil trade. Informed sources said this week that ports in Shandong province, China, are seeking more detailed information about oil tankers older than 15 years entering the port.
Tightening Insurance Regulations for Ships Operating Under UAE Flag
The UAE is tightening insurance regulations for ships under its flag due to concerns over oil spills from inadequately insured vessels. This move comes amid rising incidents involving 'ghost' tankers that transport oil from sanctioned countries. The new regulations aim to enhance safety and accountability in maritime operations.
👥 Key Players
📰 What Happened
The UAE is implementing stricter insurance regulations for ships flying its flag to address concerns over oil spills from inadequately insured vessels. This move is in response to increased incidents involving 'ghost' tankers that transport oil from sanctioned countries.
- The UAE requires additional documentation for P&I insurance from companies outside the International Group.
- Incidents involving 'ghost' tankers have reached their highest level, prompting regulatory action.
💡 Why It Matters
📚 Background
The rise of 'ghost' tankers is linked to efforts by countries like Iran and Russia to bypass international sanctions, often leading to increased risks of maritime incidents.
🏷️ Entities Mentioned
Translated from the original and edited for English readers. View original source →
Translation confidence: 85%