The arrangement guarantees coverage of war risks at no cost in the territorial waters of the State of Israel.
An arrangement for war insurance risk for ships and cargo has been reached. Minister of Finance Silvan Shalom announced that he had decided to adopt a special arrangement to cover war risks through the State insurance company Inbal Insurance Co. The decision is due to the rise in insurance rates for vessels carrying imports and exports to and from Israeli ports.
The special arrangement guarantees coverage of war risks at no cost, in accordance with the Property Tax and Compensation Fund Law – 1961, for ships and cargoes in the territorial waters of the State of Israel. There is an option to extend the coverage up to 30 nautical miles from Israel's coastline for a premium.
Ministry of Finance director general Ohad Marani said the decision would prevent additional damage to the Israeli economy and save the business sector additional insurance costs and payments in foreign currency.
Published by Israel's Business Arena on 22 October 2001