A number of high-level meetings are scheduled for this week in an effort to avert a crisis in the overseas trucking sector, which is finding it nearly impossible to get motor insurance.

The impasse will affect hundreds of existing trucks as their policies come up for renewal, as well as new trucks requiring registration.

The crisis was precipitated by a few multi-million claims after accidents, including a significant one in the UK, which forced local insurers to review the situation.

A spokesman for a leading insurance company said: “The potential liability for claims has risen dramatically.

“Premiums in Malta have remained a fraction of what they are overseas – but this is not about raising the premiums – even though I appreciate that this would be a burden for operators. It is about an insurance company taking on the risk alone.

A few multi-million claims after accidents, including a significant one in the UK, forced local insurers to review the situation

“I believe that the solution is for co-insurance – sharing the risk between more than one insurance company – but the sector needs to talk about this.

“We are actively seeking a way out.”

Jonathan Vella of Express Logigroup is one of the many companies affected, with two new trucks arriving in April and many of his fleet soon up for renewal.

“We were told six weeks ago that Middlesea could not renew our policies and other insurers have also turned us away.

“It seems that co-insurance is the only way forward but something needs to be done to find a solution quickly,” he said.

The average premium for a truck working in the EU would be in the range of €3,500 to €4,000 and would cost as much as three or four times that from a foreign insurance company.

There might also be other limitations imposed that could affect operations, Mr Vella said.

The Malta Insurance Association said it was aware of the situation, saying this was caused by a “variety of reasons, which may include deteriorating or bad claims experience”.

“As an association representing the interests of its members, the MIA will continue to follow any developments in this regard,” its director general Adrian Galea said.

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