Friday, 11 June 2010

Trafigura Payout: Covered by Insurance?

A report in the Dutch newspaper, de Volkskrant, suggests that the payout of 200 million Euros made by Trafigura after the illegal dumping of waste by Societe Tommy in Abidjan, Ivory Coast, MAY be covered by insurance.

I apologise for the lack of clarity but Google Translate has not handled this article well.

Neither Trafigura nor the Norwegian insurance company, Assuranceforeningen Gard, would comment about the speculation.

Two experts have different views, one saying that no one intentionally caused damage and so the claim should be paid.  I assume the “no intention” refers to on Trafigura’s part.

Another said that Gard have in their normal policies a clause which excludes illegal, unsafe or ‘too dangerous’ actions and so it is possible in the worst case for Trafigura that the claim wouldn’t be paid …… if the clause were in the policy AND if Trafigura were guilty of illegal, unsafe or ‘too dangerous’ actions.  This has not been shown to be the case.

Clearly this article is speculative despite stating that they have talked to insiders.

We may find out the truth  …. perhaps not.

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