The Frigate KNM «Helge Ingstad» is not insured
The grounded Frigate KNM «Helge Ingstad» is not insured. The Armed Forces confirm this to NRK. The ship has a value that is probably not far from the Navy’s total spending in one year.
– The Norwegian state is a self-insurer. The Armed Forces are thus not insured against such incidents, and must, therefore, replace damaged material themselves, Commander in the Navy, Per-Thomas Bøe, informs NRK. He is a spokesperson for the Armed Forces.
The Norwegian state does normally not put insurance on its assets but takes the risk of replacing what is lost over the budget instead.
The same applies to the Armed Forces, and the wrecked warship KNM «Helge Ingstad», which looked likely to capsize a while ago.
The Norwegian public broadcaster, NRK, has asked the Department of Defence about the price tag on the frigate which is now shipwrecked in Western Norway but has as of now not received an answer to the question.
Costs between NOK three and four billion
According to the Auditor General’s review of the frigates operational capabilities, which was handed over to the Norwegian Parliament (Stortinget) in the summer two years ago, the approved budget framework for the frigate weapon was NOK 19.2 billion (2014) including execution costs. There was then an amount of NOK 0.7 billion, known as a so-called collateral buffer, outstanding.
This amount included five frigates and six helicopters. The helicopters are still not operative due to major problems with them.
The estimates are uncertain, but the marine vessel now damaged in Hordaland may have a price tag that is not far from the entire Norwegian Navy’s budget for one year.
If the price of the helicopters is deducted from the frigate calculation – the price of each frigate is about NOK 3.5 billion apiece.
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© NRK / #Norway Today