The collision and sinking of a car carrier and oil tanker just outside the Strait of Singapore last Saturday is expected to result on large claims on cargo, hull and protection and indemnity policies.
According to a report, insurance sources said the accident could also spark a legal fight over liability as cargo and hull insurers consider subrogating claims against the vessels' third-party liability insurers.
The accident is currently under investigation by the Maritime and Port Authority of Singapore (MPA).
Last Saturday, the Panama-registered tanker MT Kaminesan and Panama-registered car carrier MV Hyundai No. 105 collided. The two vessels were heading in opposite directions in the narrow strait between Singapore and Indonesia. No one was injured in the accident.
The tanker, owned by Tokyo-based Mitsui O.S.K. Lines, did not spill the approximately 82.3 million gallons of crude oil it was carrying, said the report.
The car carrier sank on Sunday after it was towed out of shipping lanes. Its cargo of 4,191 cars, which was bound for Europe, was worth about $40m, according to the ship's operator, Seoul-based Eukor Car Carriers.
The Kaminesan oil tanker was successfully towed to port.
The MPA said both vessels were given warnings before the collision from the MPA's vessel traffic information service. It also claimed the two vessels communicated with each other.
Bermuda-based UK Mutual Steamship Insurance Assn confirmed that it covered the MV Hyundai No. 105 for third-party liability but said it did not know whether the wreck will have to be removed.
A spokesman for the P&I club said salvage company Svitzer Wijsmuller Salvage, based in Denmark and Norway, will send divers to examine the wreck.
Eukor said in a statement it would “go to any lengths” to prevent any environmental damage as a result of the collision and said it had the full support of its insurance companies to do so.
The Norwegian Hull Club, based in Bergen, Norway, insured the car carrier's hull at a value of $12m, said the report. It said insurance for the MV Hyundai No. 105's cargo was arranged by companies importing the cars.
