Dealmakers: AIG's life unit seeks buyer, MetLife and Hartford talk union

October 15, 2008

While the insurance end of the broad financial services market was said to be less infected by toxic mortgage-related securities, AIG's bailout and the recent announcement that juggernauts MetLife and the Hartford are talking marriage indicate otherwise.

The U.S. life insurance and annuities units of American International Group are rumored to be on the block to help repay a two-year $85 billion federal government loan with annual interest payments of at least 8.5%, which averted financial ruin following three quarterly losses totaling more than $18 billion and credit downgrades.

The embattled company, once the world's largest insurer, has hired JPMorgan Chase to find buyers, according to published reports. France's Axa SA, Swiss Reinsuance and ING Groep of the Netherlands have been identified as potential suitors. Some industry analysts believe the domestic units could fetch some $22 billion to $28 billion, while AIG's overseas life insurance division is appraised at about $62 billion.

CEO Edward Liddy, who initially sought to preserve as many insurance operations as possible after he was appointed by the government to run AIG, is promising investors a nimbler firm with a focus on the property and casualty line and a stake in an overseas life insurance unit that caters to fast-growing markets across Asia and India.
Meanwhile, MetLife recently approached life and property insurer Hartford Financial Services Group about a merger, according to the Wall Street Journal. The paper reports that the talks did not lead anywhere.

Source: Employee Benefit Advisor

Australian Superyacht Crew Visa - NEW in October 2008

The Superyacht Crew Visa is a visa specifically for crew members who are employed on a Super yacht (vessels over 24 meters), in Australia. This visa will be introduced in October 2008.

The crew member can apply for the visa anywhere in the world. To be eligible for the visa, the crew member must be at least 18 years old, be sponsored by the yacht’s captain or owner, and be able to provide evidence of employment, (i.e. employment contract, vessel registration, insurance and Survey Certificate).

As a crew visa holder, the crew member must work for the employer who sponsored the visa, and only work in the position that was nominated on the visa application. If the crew member changes the employment, a new sponsorship and visa application will be required.

A crew member applying for the visa can stay in Australia for an initial period of three, six or twelve months. The application can be completed online on the Department of Immigration and Citizenship website: www.immi.gov.au.

Who is responsible for sick crew?

Scenario:

A foreign crew member needs emergency appendectomy surgery in the US, without having a worldwide crew health insurance policy in place. The yacht has a charter starting in the Caribbean and is leaving the US the following morning after the incident. The Captain has no choice but to leave the sick crew member behind, still being treated in the hospital. Who has the final responsibility for the foreign crew member? Appendectomy surgery is considered an "illness", it's not an accident happening on board the vessel where the yacht's insurance will pay the claim. Isn't the management company, or the owner responsible for the foreign crew member from the time of entering the country on a B1/B2 work VISA?

"Inpatient hospitalization in the US is an average of $7,000 per night. Appendectomy surgery requires at least 3 days of inpatient treatment. Who is responsible for the $21,000 bill?"

Some yachts want to have a waiting period before offering health insurance to the crew members, because of the quick turnover rate. International Crew insurance policy premiums range from as little as about $100 to $200 per month and crew member for a major medical full coverage insurance policy that would make any US domestic insurance holder jealous.

"At the end of the day, is it really a "saving" for the owner, not to cover a foreign crew member as of day one? Can you even claim the vessel insurance for a medical incident that has no "work related" accidental cause? Probably not....
Is it worth using the high premium vessel insurance policy for a medical claim when the main purpose of that type of insurance policy is to pay for high monetary claims related to the yacht itself?"

A good crew insurance policy is worth every penny to the owner. The owner liability decreases, especially in times where lawsuits are as normal as brushing teeth! The vessel insurance shouldn't be used for incidental crew medical claims.

Get your quotes now by calling (+1) 754 234 4325, or e-mail info@crewinsuranceservices.com