Class III - Trade Disruption Insurance for the Cruise and Passenger Vessel Industry

River flooding cancels cruises

An Assured managed a fleet of river cruise vessels operating within Central Europe.

As part of his cover the vessels were insured with Transmarine for net loss of earnings following disruption to trade caused by extraordinary weather conditions.

During the summer of 2002 weather conditions caused many rivers in Central Europe to rise to dangerous levels, resulting in widespread flooding and, for several weeks, the closure to navigation of some of the major river trading routes. Rivers affected included the Danube and the Elbe.

The Assured's cruise program was severely disrupted as a result of these conditions and the consequential navigational restrictions imposed by the authorities. Several vessels had to be laid up at safe berths until the flooding subsided.

Transmarine was able to compensate the Assured for his net loss of earnings for those periods when he was unable to operate his vessels due to the extraordinary weather conditions