India demands for paying less charges to marine insurers
Marine insurers should stop charging a war risk premium, already many insurance costs India wants marine insurers to stop charging a war risk premium on cargo ships plying the Indian Ocean that increases freight costs, and is lobbying the global maritime regulator for help in the matter.A joint war committee comprising underwriters from the Lloyds Market Association and International Underwriting Association on 8 January expanded large parts of northern Indian Ocean as a conflict zone, the eastern border of which extends to the west coast of India.This has raised insurance costs of cargo reaching or going out of the countrys western ports.Indias exporters and importers will also have to bear higher costs for transporting goods because of restricted availability of ships as many fleet owners may avoid using this route instead of paying higher premium, according to T.V. Shanbhag, group adviser to Indias biggest ship-broking firm, Mumbai-based Transocean Shipping Agency Pvt LtdConsidering that there have been no (pirate) attacks reported for the last two months within 500 nautical miles (926km) from the Indian coast, after the Indian Navy has taken remedial measures, it is imperative that the eastern boundary of the war zone be reduced to an appropriate longitude, M.M. ...
Read more