[Federal Register: October 30, 2001 (Volume 66, Number 210)]
[Notices]
[Page 54799]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30oc01-115]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket No: MARAD-2001-10903]
Commercial War Risk Hull and Protection and Indemnity Insurance
on Title XI Mortgaged Vessels Operated Exclusively on the Inland Rivers
and Intercoastal Waterways of the United States and on the Great Lakes
AGENCY: Maritime Administration, Transportation.
ACTION: Policy Review with request for comments.
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DATES: Interested parties are requested to submit comments on or before
November 13, 2001.
FOR FURTHER INFORMATION CONTACT: Edmond J. Fitzgerald, U.S. Department
of Transportation, Maritime Administration, Director, Office of
Insurance and Shipping Analysis, Telephone (202) 366-2400, Room 8117,
400 Seventh Street, SW., Washington, DC 20590.
Comments regarding this policy review should refer to the docket
number that appears at the top of this document. Written comments may
be submitted to the Docket Clerk, U.S. DOT Dockets, Room PL-401, 400
Seventh Street, SW., Washington, DC 20590. {Due to current U.S. Postal
Service (U.S.P.S.) delivery problems in Washington, DC, commenters are
urged to use one of the following: mail via non-U.S.P.S. delivery
service (e.g. FedEx, UPS, DHL etc.); or fax their comment to MARAD at
202/366-9206; or use electronic filing as explained below}. Comments
may also be submitted by electronic means via the Internet at http://
dmses.dot.gov/submit. All comments received will be available for
examination at the above address between 10 a.m. and 5 p.m. EST, Monday
through Friday, except Federal holidays. An electronic version of this
document is available on the World Wide Web at http://dms.dot.gov.
SUPPLEMENTARY INFORMATION: Some experts are predicting a possible
marine threat, either as a means or as a target or both, if another
terrorist attack were to occur against the U.S. In light of this and
the September 11th events, the Maritime Administration (MARAD, we, our,
or us) believes it should revisit the existing inland/Great Lakes war
risk insurance waiver policy and requests public comment on whether we
should change our current waiver policy. We have the authority to
rescind or revise the existing waiver policy and to impose the full war
risk cover on all Title XI vessels if we determine that it is now
necessary.
Currently, we waive the Security Agreement requirement for
commercial war risk hull and Protection and Indemnity insurance on
Title XI mortgaged vessels, which are operated exclusively on the
inland rivers and intercoastal waterways of the United States and on
the Great Lakes. This policy was approved by the Assistant Secretary of
Commerce for Maritime Affairs on June 30, 1971, and has remained in
effect ever since. Most Title XI companies operating exclusively inland
or on the Great Lakes have taken advantage of this waiver. MARAD
estimates that approximately 20 companies with over 500 vessels
(including a large number of inland barges) are not insured for war
risks.
The standard war risk insurance policy covers a number of non-
marine perils risks, including warlike operations, strikes, civil
unrest and acts of terrorism. The basic underlying assumption for the
war risk waiver for inland/Great Lakes was that the threat of attack
within the continental 48 states or Great Lakes was very slight. Events
of September 11, 2001, have called this basic assumption into question.
As a consequence, we may begin to require that some or all of the
inland Title XI vessels have war risk cover. We may not require war
risk cover for all inland Title XI vessels because significant groups
or fleets of inland barges are widely dispersed on the inland waters at
any point in time. This wide distribution limits our inland/Great Lakes
Title XI exposure. Therefore, the risk of a significant loss from any
one event or target may be relatively small.
Dated: October 25, 2001.
By Order of the Acting Deputy Maritime Administrator.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 01-27276 Filed 10-29-01; 8:45 am]
BILLING CODE 4910-81-P