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SAFETY4SEA

INSA asks EU to continue insurance cover to Indian ships

by The Editorial Team
March 19, 2012
in Shipping
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INSA requests incurance cover

2011.9.23- vessel.jpgShipowners body INSA said it has requested the European Union (EU) to continue providing insurance cover to Indian ships for carrying oil from Iran, which is facing sanctions from the US and Europe.

“We have written to the European Union to allow its protection and indemnity cover (P&I) club to continue extending cover to Indian vessels,” the Indian National Shipowners Association (INSA) CEO Anil Devli told PTI.

INSA has mentioned that not providing insurance cover would be against the International Convention on Civil Liability for Oil Pollution Damage, Devli said.

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The sanctions prohibit EU-based entities from providing insurance and guarantees for transportation of oil from Iran. Most of the Indian shipping lines take protection and indemnity cover (P&I) mainly from them.

Shipowners have expressed apprehensions that they may not get international insurance cover following the sanctions, announced on January 23.

Earlier, the government said that India is considering providing sovereign

guarantee to domestic shipping lines for import of crude oil from Iran.
SCI, which operates about 40 tankers, will be one of the most affected companies as it will lose its EU insurance coverage for oil fleet operating in Iran from July 1, as European insurers will be prohibited from indemnifying ships carrying Iranian oil.

Apart from SCI, companies like Great Eastern Shipping and Mercator Lines have contracts with state-run oil companies like Indian Oil and Hindustan petroleum to import crude.

Source: The Economic Times

Tags: EUIndiamarine insurance

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