Minister Noel meets with FFAW officials to discuss marine insurance concerns

Walter Noel, Minister of Government Services and Lands, met with representatives of the Fish, Food and Allied Workers Union on Tuesday, March 5 to discuss concerns related to the availability and cost of marine insurance. Union representatives advised the minister that they are facing large insurance rate increases and very high deductibles. They contend that the situation is posing a serious threat to this year�s seal fishery and to a timely start for the crab and shrimp fisheries.

Minister Noel informed union representatives that he would have his officials investigate the matter and report back to him as soon as possible as to any assistance his department might provide.

The minister said: "I appreciate the seriousness of this matter. This is a huge concern for fish harvesters. There are now only two companies, represented by two brokers, providing insurance on fishing vessels in the province, and premiums are increasing. Furthermore, only one of those companies will provide insurance on vessels while they are engaged in the seal hunt. An even bigger problem is the high deductibles for vessels fishing in ice. For a vessel valued at $500,000 or more, there is a $150,000 deductible while fishing in ice and a $250,000 deductible while engaged in the seal fishery. A normal deductible while not fishing in ice is $5,000. I have heard clearly what the union representatives had to say, and I intend to do all I can to assist."

The Superintendent of Insurance met today with representatives of the union and the industry to seek a solution to this matter and will hold additional meetings with the parties in the next few days. He will also examine marine insurance systems in other countries.

Media contact: Rick Callahan, Communications, (709) 729-4860.

2002 03 06                           5:10 p.m.