EUROPE

TT Club limits crane exposure

18 years ago

Substantial insurance claims loom following accidents at two UK ports this year, but the exposure of the major mutual insurer TT Club will be limited to $1m in each case. Reinsurers will have to meet claims above the clubs standard claims retention.

The club is on risk for physical damage and business interruption which hit Southampton Container Terminals on January 18 when the boom of a quay crane smashed onto a Hapag Lloyd ship, the 8,750 teu Kyoto Express, and other shipside operations were halted pending safety checks of similar cranes. Shipping calls diverted to Thamesport, Tilbury and Rotterdam. The early-1990s built crane is expected to be a total loss.

At Felixstowe, the

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, carrying a spectacular load of five new gantry cranes was blown off its moorings by high winds on March 1, damaging one quay crane which toppled on to another. The TT Club is seeking to hold the ship responsible for the total loss of the shore cranes.

The two UK smashes will have a minor effect on club finances, which have been positive since a shake-up in its portfolio sparked by problems in 2001-2002. The club, which has 413 port and terminal operators in membership accounting for 60% of its business, saw its surplus rise to $8.3m in 2007 from $5.9m, and combined with reserves, the figure was up 7% to $126.9m.