Ever Given Insurer Finds Reduced Compensation Too High To Pay

The news of the Suez Canal Authority cutting down the Ever Given compensation claim had emerged last week when Chairman Osama Rabie said it on a television talk show. The compensation has been reduced from $916 million to $600 million along with some payments terms and conditions. However, the ship’s insurer the UK P&I Club has expressed their displeasure with it, calling the claim too high still.

The Insurer has reportedly said that a reduced claim of 600$ million is exceptionally large. The ship chartered by the Taiwanese company Evergreen and owned by the Japanese company Shoei Kisen had run aground in the canal on March 23rd and refloated on March 29th after 6 days of blocking the canal, halting maritime trade.

At present, the ship has been held ransom at the Great Bitter Lakes outside the canal, where the crew and ship remain anchored. With no prospect of an out court settlement, the SCA has said that they are proceeding with the next step of legal discourse.

Representation Image – Credits: Twitter

Meanwhile, the insurer has alleged that the new claim filed by the SCA in the court doesn’t show the reduced amount. They have further added that the claim of this size still needs to be validated by concrete evidence and data which haven’t been provided by the Canal Authorities.

The next hearing of the court has been scheduled for May 22 when the SCA’s claim will be considered. So far, the investigation has shown no proof of any wrongdoing by the SCA and its pilots.

Some sources have highlighted that the ship could be authorized for auction by the court if the owners reject any compensation ruling.

Earlier last month, the owners’ plea had been rejected in an Egyptian court which uphold the SCA’s decision to hold the crew and the ship for ransom.

Reference: hindustantimes.com

Source: Maritime Shipping News