Ship War Risk Surcharge Criticized by Israeli Government

Minister of Finance Avraham Hirchson said that the rate hike was too high, and did not reflect Israel’s deployments for protecting its coastline and ports
 
Following decision made by marine insurers in London to raised war risk premiums for merchant ships visiting Israeli ports, because of the intensifying conflict and naval blockade of Lebanese ports, it was severely criticized by Minister of Finance Avraham Hirchson who said that the rate hike was too high, and did not reflect Israel’s deployments for protecting its coastline and ports.
 
Israel's criticism followed a statement issued by a leading British marine underwriter who said that: 'We have raised our additional premiums and I'm pretty certain all the other syndicates have done the same...There are compelling reasons to do so’. He added that Both Lebanon and Israel are on the Lloyd's market Joint War Committee list of risky areas for merchant shipping that were prone to war, strikes, terrorism and related perils.
 
In a strong statement issued by the Ministry of Finance Hirchson said the government was aware of possible negative impact of the maritime insurance rates on the Israeli economy, and that it was seeking alternatives.
 
In order to reduce the negative effect of the high war risk surcharge, the ministry allowed importers to deduct the extra charge from the customs CIF valuation basis for goods imported to Israel.
 
The Government also announced that Ministry of Finance senior deputy accountant general Yariv Nehama and Inbal Insurance CEO Yitzhak Klein were in London to try to re-negotiate the issue with marine insurers in London in order to solve the problem. Insurance experts in Israel added that Hirchson had also instructed Accountant General Dr. Yaron Zalika to fully examine local alternatives for war risk insurance for cargo ships arriving in Israel.