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

Virus results in cruises being cancelled

Claim One

An Assured operated a cruise vessel on domestic cruises. An outbreak of a type of gastric influenza or Norwalk Virus arose on-board the vessel, although the source could not be determined. This resulted in cruises having to be cancelled at short notice.

The vessel was insured with Transmarine for disruption to trade caused by infectious diseases or illness to persons on board the Insured Vessel, therefore, the Assured was able to recover his net loss of earnings from his TDI policy

Settlement of the Assured’s claim included reimbursement to passengers of the ticket costs, which formed the major portion of the loss of revenue, plus other lost revenue in respect of excursions.

Claim Two

Another vessel was on a north European cruise itinerary. Seven days into the voyage an infection, thought to be Norwalk Virus, broke out affecting a large number of passengers and crew. The problem was so severe that it became impossible to maintain the advertised cruise schedule. The cruise was curtailed and the vessel returned to the previous port of call. Despite extensive investigations it was never established how the virus came to be on-board.

The Assured was compensated for his proven net loss of earnings in accordance with his TDI policy.

Transmarine had agreed to cover the shipowner's liability for these compensation payments when the policy had been taken out and accordingly indemnified the Assured for these plus his own net loss of earnings.