How can the Air Transportation Linear Accelerator Ex USA be underwritten after 9/11? I was in Kuantan port at that particular time as part of the team investigating a shipment from Indonesia being hijacked. Lloyd Intelligence mid-ocean satellite AIS coverage detected the ship was abandoned at the Kuantan port minus cargo.

Back at the hotel for a rest, there was an email pops up in the inbox requesting me to underwrite a shipment of air cargo. Why me again? Totally exhausted for the past 4 days with a few hours of sleep, I slept like a log until the next day.

Air Transportation Linear Accelerator Ex USA after 9/11

Linear Accelerator

The USA’s manufacturer supplied me with the detailed specifications of the medical equipment. What is a linear accelerator? A linear accelerator (LINAC) is the customized medical equipment. It produces high-energy x-rays or electrons to conform to a tumour’s shape. It can destroy cancer cells while sparing surrounding normal tissue.

The danger of X-ray

X-rays and electrons are classified as dangerous materials. The terrorists can use it to make dirty bombs. X-rays can cause mutations in our DNA. It might develop cancer in later in life. For this reason, X-rays are classified as a carcinogen by the World Health Organization (WHO). Possibly, at low doses, radiation might increase the risk of cardiovascular disease and some other non-cancer diseases. The long-term effect might be inherited down to the third generation.

I emailed the insured for the following details before I can issue their air cargo policy with a terrorism clause.

REQUESTING

• A copy of product liability: Are you looking for a specific document or guidelines on product liability? If you need a copy of a specific document, please let me know which one, and I can help you find it.
• The size of the unit load container: Unit Load Devices (ULDs) come in various sizes depending on their use. For example, an LD3 container typically measures 159 cubic feet (4.5 m³) and is used for wide-body aircraft. If you need more specific information, please let me know the type of container you’re referring to.
• How to pack the equipment: Proper packing is crucial to ensure the safety of your equipment during transport. Here are some general guidelines:
  • Secure, Stable, and Sufficient Packaging: Ensure your items are well-protected against shock and vibration.
  • Stackable and Forkable: Use pallets or crates for heavy items to ensure they can be safely handled.
  • Cushioning and Bracing: Use materials like bubble wrap or foam to cushion items and prevent movement within the container.
  • Labelling: Clearly label all packages with handling instructions and destination information.
• Prevention measures for the leakage of X-rays: To prevent X-ray leakage, ensure that:
  • Shielding: Proper shielding materials are used around the X-ray source.
  • Regular Maintenance: Regularly inspect and maintain x-ray equipment to ensure it is functioning correctly.
  • Training: Ensure that personnel are properly trained in the safe use and handling of x-ray equipment.
• Depletion of uranium in a linear accelerator: Linear accelerators typically use electricity to accelerate particles, not uranium. If you’re referring to a specific type of accelerator that uses uranium, please provide more details.
• Disposal of balanced dosage: If you’re referring to the disposal of radioactive materials, it’s crucial to follow strict regulations and guidelines set by authorities. This often involves:
  • Segregation: Separating radioactive materials from other waste.
  • Containment: Using appropriate containers to prevent leakage.
  • Labelling: Clearly label containers with the type and level of radioactivity.
  • Authorized Disposal: Disposing of the materials through authorized channels.

Air Transportation Linear Accelerator Ex USA after 9/11

Risk Management Visualization

The long wait in the hotel was agonizing. My mind was filled with images and video clips of the Twin Towers collapsing, and people jumping out of windows to save their lives. The horror of dead bodies strewn on the debris is etched in my memory.

The probability of another terrorist attack on a passenger plane after 9/11 is estimated to be between 5% and 20%. If a plane were shot down, the catastrophic impact on the surrounding area would be immense, as seen in the MH17 disaster, where debris was scattered over a 50-square-kilometer area.

Accepting the risk involves taking precautionary steps such as ensuring robust security measures, having emergency response plans, and securing comprehensive insurance coverage. If you decline the risk, finding another underwriter in a short period can be challenging, but not impossible.

Given the high probability of another terrorist attack post-September 11, many small or local insurers are reluctant to undertake such risks. To underwrite with a comfortable premium for such high-risk events, consider the following steps:

1. Risk Assessment: Conduct a thorough risk assessment to understand the potential threats and their impact. This helps in setting appropriate premiums and coverage limits.
2. Reinsurance: Partner with reinsurance companies to share the risk. This can help in managing large claims and maintaining financial stability.
3. Specialized Policies: Offer specialized policies that include public liability with a terrorism extension. This ensures comprehensive coverage for high-risk scenarios.
4. Premium Adjustment: Adjust premiums based on the level of risk and the extent of coverage. Higher premiums may be necessary for high-risk events, but they should be balanced to remain competitive.
5. Government Support: Explore government-backed insurance programs or terrorism risk insurance acts that provide a backstop for insurers, reducing the financial burden.

By implementing these strategies, I can offer a comfortable premium while ensuring adequate coverage for high-risk events.

Upon receiving the full details of my request, I issued the policy with an additional clause and an extra premium for the sum insured of RM 12,000,000.

Policy Issued

• ICC (Air)
• If the insured pays the additional agreed premium, this policy covers the insured’s liability for claims made against them for bodily injury or property damage to any third party at the specified premises, directly caused by any terrorist organization. This clause is subject otherwise to the terms, conditions, and exceptions to this policy.

Air Transportation Linear Accelerator Ex USA after 9/11

Warranties:

A.) Two armed air marshals will be on the plane to escort the cargo from the USA to Singapore Airport.

B.) Another four plain-clothed armed escorts will accompany the transport from Singapore to a designated hospital in Malaysia during the off-peak period.

C.) A complimentary public liability policy with a sum insured of US$ one billion will include a terrorism extension clause.

All the terms and conditions were complied with, and the consignment arrived safely. However, a few years later, two units of medical equipment became infected with fungus because the hospital had not found suitable professional personnel to handle them.

This situation underscores the importance of having qualified personnel to maintain and handle specialized equipment to prevent such issues from arising. It’s crucial to ensure that equipment is regularly checked and maintained by professionals to avoid potential damage or health risks.

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