Maritime War Risk Insurance (20.803)

Program

20.803 Maritime War Risk Insurance

Federal Agency

Agency: Department of Transportation
Office: Maritime Administration (MARAD)

Authorization

Merchant Marine Act of 1936, Public Law 104-106, 46 U.S.C 1281-1294.

Program Number

20.803

Last Known Status

Active

Objectives

To provide war risk insurance whenever it appears to the Secretary of Transportation that adequate insurance for waterborne commerce cannot be obtained on reasonable terms and conditions from licensed insurance companies in the United States.

Types of Assistance

INSURANCE

Uses and Use Restrictions

Insurance binders or policies on certain vessels in operation or under construction are provided for nominal cost in peacetime.

Eligibility Requirements

Applicant Eligibility

All U.S. flag vessels, and certain foreign flag vessels meeting specific criteria as determined by the Maritime Administrator.

Beneficiary Eligibility

Vessel owners, their crews, and certain designated beneficiaries of deceased crew members.

Credentials/Documentation

Applications, vessel data, unqualified contract of commitment, and other supporting data as required by 46 CFR Part 308. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Complete and proper filing of applications, supporting documents, and payment of appropriate binding fees or promises as specified in 46 CFR Part 308.

Award Procedure

Binders issued only to those applicants that qualify.

Deadlines

Not Applicable.

Range of Approval/Disapproval Time

From 5 to 15 working days.

Appeals

Not Applicable.

Renewals

This program has been extended until December 31, 2010.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.

This program has no matching requirements.

This program does not have MOE requirements.

Length and Time Phasing of Assistance

Indeterminate; depends on war situation and posture of the country. Method of awarding/releasing assistance: by letter of credit.

Post Assistance Requirements

Reports

Audits

Not Applicable.

Records

Not applicable in peacetime.

Program Accomplishments

Fiscal Year 2008: As of June 1, 2009, 300 war risk binders have been issued to U.S. citizen-owned and foreign-flag registry and their crews. Insurance affected under these binders cannot be obtained commercially during wartime. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

Financial Information

Account Identification

69-4302-0-3-403.

Obligations

(Insurance) FY 08 $77,000; FY 09 est not reported.; FY 10 est not reported. - Obligations (Contractual fees and underwriting agents' fees)FY 08 $77,000; FY 09 $0; and FY 10 $0.

Range and Average of Financial Assistance

Applicable only in designated combat areas, subject to terms of the binder.

Regulations, Guidelines and Literature

Rules and Regulations are set forth under 46 CFR 308 (as published under authority of Public Law 101-115) and 309 as amended from time to time in the Federal Register.

Related Programs

Not Applicable.

Information Contacts

Regional or Local Office

See Regional Agency Offices. American War Risk Agency, 30 Broad Street 7th floor, New York, NY 10004 Telephone: (212) 405-2814.

Headquarters Office

Brenda J. Bell 1200 New Jersey Avenue, S.E., , Washington, District of Columbia 20590 Phone: (202) 366-8797

Web Site Address

http://www.marad.dot.gov.

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Not applicable.