British cruise liner’ reef damage could face Rp6 trillion bill

Government and insurer have very different ideas over clean-up costs

British cruise liner’ reef damage could face Rp6 trillion bill

Insurance News

By

The damage to coral reefs off the coast of Raja Ampat in West Papua caused by a British cruise liner could cost Rp 6 trillion or $450,000, according to the Indonesian government.

Local reports say that the Ministry of Environment and Forestry estimated that that the Caledonian Sky damaged 13,270 square meters of coral when it ran aground the popular Indonesian tourist spot in March.

Quoting local media, GIVnews.com said that Coordinating Minister for Maritime Affairs LuhutPandjaitan said that the government is in discussions with the insurer about compensating for the damage.

However, local newspaper Koran Tempo said that Singapore based insurer SPICA has quoted a much lower payout for the damage, according to an Indonesian official who spoke on condition of anonymity.

The official reportedly said that the government and the insurer have a long way to go to reach a settlement.

“And, if Noble Caledonia is not willing to pay, we may bring the case to an International Tribunal,” Heru Waluyo, Ministry of Environment and Forestry’s director for pollution and coastal damages, was also quoted as saying in the GIV report.

The 90 meters long liner was en route from Papua to the Philippines when it ran aground the Raja Ampat, off the city of Sorong, which is on the northwest tip of West Papua.
 

Keep up with the latest news and events

Join our mailing list, it’s free!