Indonesian ship owners form protection, indemnity body
Thursday, October 28 2010 - 07:40 AM WIB
"We will take over responsibility for indemnity from ship owners in the event of accidents, for example if a ship smashes a pier," Promindo chairman Bambang Ediyanto said.
Similar to insurance, the indemnity will be given from annual premium paid by Promindo members. In case a company needs the fund due to financial problems, the money will be transferred.
Promindo founder Oentoro Surya said the amount of premium varied, depending on the ship?s age, type, weight and other insurance programs that protect the vessel.
?In general the premium is based on Gross Ton (GT). A company pays between US$2.5 and $5 per GT. The amount will be huge if we talk about GT of vessels operating in Indonesia ,? he said.
Quoting data from the Indonesia Ship Owners Association (INSA), he said about 8,500 ships are operating in the country, 600 of them support the upstream oil and gas industry.
"The ships? capacity total 11 million GT. Imagine how much the national shipping companies have to pay to overseas P&I providers such as in London, Japan, Korea and China. With Promindo?s presence the money will not go abroad but be managed at home for the ship owners? interests,? Surya said.
Ediyanto said the indemnity body would not only cover losses resulting from accidents, but also procure ships for its members from the premium collected.
"We just set up the body today. We expect shipping companies join Promindo and get protection," he said.(godang/bernard)