Sustainable Recycling Interest - new cover from Norwegian Hull Club
SRI cover - which is subsidiary to ordinary P&I cover - is triggered by a total loss and covers the assured’s added costs for recycling a wreck at an EU- verified yard. Cover limit is up to USD 5 million, and is available to both existing and prospective clients.
Norwegian Hull Club has developed Sustainable Recycling Interest (SRI) - a cover to better enable ship owners to make the environmentally considerate choice when it comes to recycling a total loss.
“Many of Norwegian Hull Club’s clients take an active stand when it comes to working towards the sustainable shipping industry of tomorrow; they want to be part of the solution. To them, their responsibility doesn’t end until their ships have completed their operational lives with due consideration shown for the related social and environmental aspects.
However, if one of their vessels ends up becoming a total loss or constructive total loss, far from an EU SRR-approved recycling yard (and depending on the legal requirements in the jurisdiction the casualty occurs), a responsible ship owner may face having to cover the additional uninsured costs of transportation to an EU-verified yard for recycling at their own risk and cost - despite having reputable P&I insurance.”
— Norwegian Hull Club
Typical issues SRI provides cover against include:
• Recycling / disposal of a Total Loss independently of legal requirements to do so, in accordance with the EU requirements on ship recycling for EU-flagged vessels;
• Gaps in P&I cover for sustainable recycling of a Total Loss in certain jurisdictions.
Last updated Mar 08, 2023