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Insurance Loss Because Of The Bridge Collapse In The US Could Reach $3 Billion

Insurance Loss Because Of The Bridge Collapse  In The US Could Reach $3 Billion
According to a British insurance marketplace, the largest single maritime insurance loss in history will be caused by the collapse of a bridge in the US city of Baltimore. After a ship collided with the bridge, six persons were thought to be killed; two remains have been found by divers.
According to experts, the damages can reach $3 billion.
"I would say it's certainly going to be one of the largest marine losses in history," said John Neal, chief executive officer of Lloyd's of London.
"Of that there is little or no doubt," Mr Neal told the BBC. "But genuinely the good news is it's insured."
According to Neal, insurance covers both the port and the ship that collided with the bridge.
"So from a financial point of view, there is a process that will allow for financial compensation to be made and for the claim to be settled," he explained.
Thus far, the Maryland Department of Transportation has requested $60 million in emergency funding from the Biden administration in order to assist with debris removal and post-event cleanup.
The cost of fixing the collapsed bridge is not the only one. Because of how important the Baltimore port is to international trade, experts estimate that the incident might result in losses of up to $15 million until the shipping lane is reopened.
Since 1998, the port's handling capacity for goods has increased gradually.
Neal would not provide an estimate of the potential cost to insurance companies for the crash; nevertheless, Barclays analysts have estimated that the claims might come to as high as $3 billion.
According to the researchers, the bridge might sustain damages of up to $1.2 billion, and insurance firms might have to pay out anywhere from $350 million to $700 million for untimely deaths.
Millions of dollars might potentially be spent, according to Barclays analysts, if one of the largest ports in the US is closed while the bridge is being repaired.
The US's fourteenth-largest port is Baltimore's. Maryland state statistics show that 52.3 million tonnes of international cargo, valued at $80.8 billion, went through Baltimore in 2023.
Experts have emphasised that international supply networks may be impacted by the part's discontinuation.
According to President Joe Biden, the federal government ought to pay for the bridge's reconstruction.
The Maryland Department of Transportation's secretary, Paul Wiedefeld, and other officials stated that fixing the bridge fall will take time.
However, he made a commitment to "come up with a design for the replacement of that bridge as quickly as possible to get the port back up and the community back up and running" during a press conference on Wednesday.

Christopher J. Mitchell

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