[Federal Register Volume 66, Number 210 (Tuesday, October 30, 2001)]
[Notices]
[Page 54799]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-27276]


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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