BSC to get $22.48m insurance payout for abandoned ship in Ukraine

State-owned Bangladesh Shipping Corporation is likely to receive $22.48 million this month as insurance payout for "Banglar Samriddhi" – a cargo vessel abandoned in Ukraine's port of Olvia last year after a missile attack.

"We have been negotiating the insurance claim with Tysers for a couple of months. The re-insurer has finally confirmed the payout in foreign currency within this month," Syed Belal Hossain, managing director of Sadharan Bima Corporation – the primary insurer of the vessel, told The Business Standard.       

The Shipping Corporation rented Banglar Samriddhi to a Danish firm Delta Corporation. The bulk carrier arrived in Ukraine on 22 February. The ship was supposed to take ball clay from the port before travelling to Italy.

But Ukraine closed its ports following Russia's invasion on 24 February. On 2 March, a rocket struck the stranded vessel, killing one of the sailors.

The rest of the crew members then abandoned the vessel at the port of Olvia and were moved out of Ukraine into Romania safely. The attack heavily damaged the ship's navigation bridge. Fire from the explosion also damaged other parts of the vessel.

The ship was insured through the Sadharan Bima Corporation and reinsured through Lloyd's of London broker Tysers.

In March last year, the Shipping Corporation filed an insurance claim with Sadharan Bima, prompting the insurer to reach out to the reinsurer.

Referring to war risk insurance rules, a top shipping corporation official said if a damaged ship cannot be rescued within a year, it will be declared as a constructive total loss – the damage is so extensive that repairs would equal or surpass the cost of the vessel or its insurance limit.

In such cases, the reinsurer will cover the entire loss of the ship, according to him.

Sadharan Bima Managing Director Syed Belal Hossain said the ship will go to the reinsurer after the compensation. Subsequently, the vessel will be sold and Sadharan Bima will receive 1% of the risk coverage.

Banglar Samriddhi joined the Shipping Corporation fleet in 2018. The vessel was bought at Tk204 crore under a loan agreement with China.