Hundreds of Shipping Companies Operating without Insurance
3 February 2015 09:44 WIB
TEMPO.CO, Jakarta - The Indonesian National Shipowners' Association (INSA) said that around 270 shipping companies, which is about 10 percent of roughly 2,700 companies operating in Indonesia, still haven't insured their ships and crewmembers.
INSA chairwoman Carmelita Hartoto said most of the uninsured companies are operating in areas outside major cities, daily Bisnis Indonesia reported on Monday, February 2.
By March 1, 2015, the Transportation Ministry will mandate all shipowners to have indemnity and wreckage removal insurances, considering how most of the national shipping lines are quite unsafe from the many number of unremoved shipwrecks.
The mandate to insure boats, Carmelita said, will not lead to transportation tariff hike, as the insurance cost is included in companies' operating expenses. (*)
