Israel to pay compensation for ships damaged in Gaza war

Israel to provide comp. for ships damaged in Gaza war, taking steps to minimise risks for vessels using its ports. Tax auth. offers 100% of actual damage, Iron Dome air defence system "super effective" with "zero incidents" at ports. Premiums up, some vessels diverting to Haifa. Ashdod port operations unaffected.

Israel will provide compensation for ships that are damaged due to the war in Gaza and the government is taking steps to minimise risks for vessels using the country's ports, government advisories said.

Israel has vowed to annihilate the Hamas Islamist group after its fighters stormed through Israeli towns from Gaza on Oct. 7, killing 1,400 people and seizing more than 220 hostages in the worst attack on civilians in Israel's history.

The country relies on its seaports for its trade as well as for much of its needs including consumer goods and food.

Israel's tax authority said in a statement dated Oct. 26 that compensation would be awarded for "war damage" caused to any Israeli or foreign vessel located within Israel's economic waters.

"War damage is defined under the law as damage that is caused to the body of an asset due to acts of war by the regular forces of an enemy or due to other acts of hostility against Israel, or due to acts of war by the Israel Defense Forces," the statement said.

The authority said the rate of the compensation was 100% of the "actual damage", which is the difference in value of the asset prior to the incident and after it was damaged.

Israel has faced heavy rocket barrages including in the south of the country, prompting the closure of the smaller Ashkelon port, which is the nearest terminal to Gaza. There have also been repeated clashes along the northern border.