Tuesday, January 11, 2011

MOFA urges Taiwan ships to buy piracy insurance

Taipei, Jan. 11 (CNA) Taiwanese fishing boats planning to enter the Western Indian Ocean, where Somali pirates have hijacked numerous fishing vessels, are encouraged to buy insurance against piracy attacks, a Ministry of Foreign Affairs (MOFA) official said Tuesday.

In 2010, Somali pirates hijacked six Taiwanese fishing vessels in the Indian Ocean and the Gulf of Aden. Three of the boats were released upon payment of ransoms, two remain in Somalia and one has been listed as missing, Bruno C.H. Shen, deputy director-general of the MOFA's Department of African Affairs, said at a press briefing.

The government has been trying to assist is many ways, including notifying international maritime organizations of the hijackings and gathering information through Taiwan's foreign representative offices, but it cannot possibly cover ransoms, Shen said.

"The MOFA and the Fishery Agency under the Council of Agriculture are encouraging all fishing boats that are sailing into the Western Indian Ocean, where piracy is prevalent, to buy piracy insurance," he said.

Somali pirates have reportedly demanded ransoms ranging from US$1 million to US$9.5 million from ship owners. The record sum of US$9.5 million was paid by a Korean company Samho Shipping last November to free one of its oil tankers that was carrying roughly $170 million worth of Iraqi crude oil, according to a report in the Korean newspaper Joongang Daily on Nov. 8, 2010.

Piracy insurance, which is also known as terrorism insurance, covers negotiation assistance, direct financial help, and counseling for ship owners, Shen said.

He said that while there are not many insurance companies that offer this kind of policy, there is at least one foreign company that has expressed interest in providing such coverage in Taiwan.

Two Taiwan boats, Zechuntsai No. 68 and the Kaohsiung-based Taiyuan No. 227 that were hijacked last year in March and May, respectively, are still being held by pirates in Somalia, Shen said.

The owner of the Kaohsiung-based longliner Hsiuh Fu No. 1 has not been able to contact the boat since Dec. 25 last year and the vessel has been listed as missing, Shen said.

According to maritime watchdog Ecoterra International, at least 45 foreign vessels and 787 hostages were in the hands of Somali pirates as of Jan. 10.

Agence France-Presse (AFP) reported that Somali pirates raked in at least US$60 million in ransoms in 2009. (By Chris Wang) enditem /pc