Published: Friday, April 30, 2010
Author: Chris Zavos, Jennifer Salmon
Published in: Insurance Day
Subject: Transport and Trade

On 12 April 2010, US President, Barack Obama prohibited payments to specially designated nationals (SDNs) engaged in acts directly or indirectly threatening the peace, security or stability of Somalia. His order identified piracy and armed robbery at sea as such acts. Effectively, President Obama prohibited the payment of ransoms to Somali pirates in certain circumstances. In contrast, under English law, the position, confirmed in Masefield AG v Amlin (2010) (the Bunga Melati Dua), remains that ransoms are neither illegal nor contrary to public policy. Chris Zavos and Jennifer Salmon consider the implications for the London marine insurance market following President Obama's executive order.