Bangladeshi owner to get US$22 million insurance payout for missile-damaged cargo ship

A Bangladeshi shipowner is set to receive an insurance payout totalling US$22.48 million for one of its vessels after it was damaged and later abandoned as a result of the ongoing war between Ukraine and Russia.

The vessel owned by Bangladesh Shipping Corporation (BSC) is the bulk carrier Banglar Samriddhi, which remains anchored off the Ukrainian Black Sea port of Olvia after it was struck by a missile of unknown origin on March 3, 2022.

The attack, which occurred a week after Russian ground forces invaded eastern Ukraine on February 24, resulted in an onboard fire and the death of the ship’s third engineer. The 28 surviving crewmembers and the body of the third engineer were later brought off the damaged vessel and repatriated to Bangladesh.

Banglar Samriddhi was originally scheduled to load clay cargo at Olvia before sailing for Italy. However, the ship had become stranded off Ukraine following the closure of many of the country’s seaports due to the Russian invasion.

Chief insurer Sadharan Bima Corporation and reinsurer Tysers have agreed to issue the payout to BSC before the end of February.

The ship’s insurance policy stipulates its being declared a constructive loss if it cannot be rescued within a year from the time it suffered damage.

A constructive loss means the damage is considered to be so extensive that the cost of repairs would exceed the cost of the vessel itself.