by Manal Barakat, SeaNewsEditor

A new discussion paper by marine insurance and law experts at the Association of Average Adjusters (AAA) recently highlighted the increasing legal uncertainties surrounding insurance claims related to vessel groundings caused by GPS spoofing.

GPS spoofing involves transmitting false positioning signals that mislead a vessel's navigation systems, potentially leading to groundings.

The paper says that hull and machinery (H&M) policies are increasingly including cyber exclusion clauses, which could leave insurance vulnerable to such incidents.

One of these clauses is the LMA5403 clause, which excludes losses arising from the use or operation of any computer or electronic system to inflict harm.

The AAA's paper emphasises that intent, attribution, and causality are now crucial in resolving claims.

This means that insurers may not be able to refuse coverage unless they can prove GPS spoofing was intentional; if intent is shown, shipowners could see their claims denied.

Reports indicate that GPS spoofing has evolved from a niche cyber nuisance to a significant navigational hazard, with hotspots in regions such as the Red Sea, Black Sea, Persian Gulf, and the South China Sea.

The AAA encourages stakeholders in the shipping and insurance sectors to closely review policy wordings and understand the legal thresholds concerning spoofing cases.