27 Mar 2013

More councils look again at shipwreck insurance

7:43 am on 27 March 2013

Bay of Plenty Regional Council has joined Auckland and Northland in reassessing shipwreck insurance cover following the grounding of the cargo ship Rena.

Hawkes Bay Regional Council has already agreed in principal to increase its harbourmaster liability insurance from $25 million to $100 million.

While the Bay of Plenty council was not found liable for the grounding of Rena on Tauranga's Astrolabe reef in October 2011, the $275 million clean-up bill has served as a wake-up call.

The council says there are an increasing number of ships visiting the port, and other factors to consider, such as legislation before Parliament seeking to make councils more accountable for what happens in their harbours.

The council along with those in Auckland and Northland will make final decisions on their level of cover by the middle of the year.