Mobile satellite operator Orbcomm will receive US$44.25m from an insurance claim regarding the Coast Guard Demonstration satellite and five quick launch satellites it launched in June 2008 after negotiations with its underwriters.
The total insurance…
Mobile satellite operator Orbcomm will receive US$44.25m from an insurance claim regarding the Coast Guard Demonstration satellite and five quick launch satellites it launched in June 2008 after negotiations with its underwriters.
The total insurance available in the policy on the constellation was US$60m, of which US$10m was co-insured by Orbcomm itself.
As such, the settlement amount was 88.5% of the total figure of US$50m that Orbcomm was originally entitled to. The sum was lowered to US$44.25m due to the fact that two of the satellites are still operational.
The agreement on a lower payout has also ensured that the insurers waive any right of ownership on the satellites, even for the purposes of salvaging the lost spacecraft.
The constellation was designed to carry Automatic Identification System (AIS) payloads for the purpose of maritime surveillance – the provision of identities and shipping information for seafaring vessels.
