Shipping

"RINA Services and the Asian Classification Society (ACS) recently classified the first two general cargo ships at 15, 000 GT owned by IRISL, a major shipping company in Iran This dual classification is the result of a partnership signed with the Tehran-based ACS shortly after sanctions in Iran were lifted. RINA Services’ marine classification in this area reflects Italy’s strong commitment to forging long-standing relationships with countries in the Middle East and now in Iran in particular." (March 24, 2016).

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Registro Italiano Navale (RINA) “In connection with specialised assistance in the industrial and energy fields, the RINA Group offers its services to highly qualified operators, both public and private, not just in Italy but also in foreign areas of particular interest such as Kazakhstan, Iran, Croatia, Congo, Nigeria, Libya, Tunisia, Egypt, UAE, Qatar and Malaysia.” (RINA Website, “Organization.”)

"Chinese firms, such as Nanjing Tankers and Sinochem Corp, have been able to get insurance from domestic providers and were reaping huge profits from conducting the niche trade." (Reuters, "Iran petchem exports plunge due to EU sanctions-traders," 5/17/2012)

"Another contract was signed on Wednesday between the Industrial Development and Renovation Organization of Iran and CRRC Nanjing Puzhen Co., a Chinese railroad rolling stock manufacturer, for the design, procurement, supply, manufacture and delivery of 450 subway wagons for the Iranian cities of Ahvaz, Shiraz and Tabriz. “The project is worth €۵۰۰ million and will be financed by the Chinese side. The contract was signed by Naqi Manafi, IDRO’s manager for financial and economic affairs, and Wang Tao, general manager of Puzhen,” Ali Araqchi, the manager of IDRO’s international affairs who negotiated the contract, said." (March 8, 2018)

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"Iran is signing joint venture agreements with international companies to start manufacturing train wagons in Iran to meet its railroad expansion needs and reduce reliance on imports. Iranian Rail Industries Development Company and Chinese rolling stock manufacturer Nanjing Puzhen Co. LTD. signed an agreement in Tehran on Tuesday to jointly manufacture 215 wagons to be used in subways trains across Iran, IRNA reported." (Financial Tribune, "Iran Opts for JVs to Develop Domestic Wagon Manufacturing," 10/5/2016).

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"Chinese firms, such as Nanjing Tankers and Sinochem Corp, have been able to get insurance from domestic providers and were reaping huge profits from conducting the niche trade." (Reuters, "Iran petchem exports plunge due to EU sanctions-traders," 5/17/2012)

"MARINE insurers in Europe, the US and UK are providing cover for a group of 21 tankers and gas carriers tracked shipping Iranian cargoes to China, Syria, Singapore and other destinations in past months, in breach of unilateral US sanctions....The 21 vessels from the International Group of P&I Clubs include eight very large crude carriers, four liquefied petroleum gas carriers, as well as a number of aframax and suezmax tankers, mostly flagged with Panama. " (Lloyds List, "P&I Clubs warned over vessels bypassing sanctions on Iran," 8/29/2019).

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"'There will be no U.S.-domiciled reinsurer participation on the 2017 IG reinsurance program,' Andrew Bardot, secretary and executive officer at the International Group (IG) of P&I Clubs in London told Reuters on Tuesday. The new arrangements take effect on Feb. 20, he and other officials said." (Reuters, "Global Ship Insurers to Resume near Full Coverage for Iran Oil - Officials," 1/17/2017).

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"Western insurers are slowly reaching deals with Iran as they seek to re-enter a multi-billion dollar market although the pace of business is hampered by banking restrictions ten months on from the lifting of international sanctions...Iran is in more active talks with insurers to provide cover in a market valued at $9 billion overall last year and potentially double that in the next decade. Western companies need insurance in order to resume business with Iran. Shipping and trade credit insurance, which remove the risk of non-payment for goods, are the first types of insurance being offered...Protection and Indemnity (P&I) clubs - marine insurers owned by shipping firms - have started to provide cover for Iran's shipping fleet, including its oil tankers." (Reuters, "Cautious Western insurers rebuild business ties with Iran," 10/21/2016).

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“The world's largest pool of tanker insurers is advising members they shouldn't insure Iranian oil shipments, citing the short-time frame of sanction loosening agreed to between Iran and Western powers…In recent weeks, shippers and their insurers have studied the legal and practical aspects of the relief. In an interview with The Wall Street Journal Friday, Andrew Bardot, executive officer of the International Group of Protection & Indemnity Clubs, a pool of member insurers who cover around 95% of oil tanker capacity world-wide, said its members are warning clients the short-term nature of the relief make it impossible for them to indemnify Iranian cargoes. P&I members ‘are saying: 'Don't do it' as we cannot guarantee coverage,’ Mr. Bardot said. With many liability claims stemming from seaborne accidents taking years to be resolved, ‘it is highly unlikely that claims would be presented and liabilities finally determined prior to the July 20 cutoff’ of the temporary sanctions relief, Mr. Bardot said. In addition, U.S. reinsurers participating in the group's pool remain subject to insurance prohibitions, he said. That could effectively make it impossible for any member of the group to make payouts on claims. The insurance official said the International P&I was seeking clarifications from the U.S. Treasury and the European Union on whether such hurdles could be surmounted. A U.S. Treasury spokesperson said it is ‘still actively looking into this issue.’ A spokesman for EU foreign policy chief Catherine Ashton said 'consultations are ongoing,' without providing more details. For now, however, operators aren't taking chances. ‘We have sought legal advice and been told it is impossible to return’ to carrying Iranian oil, an official at a large Greek tanker operator said.” (Wall Street Journal, “Tanker Insurers Warn on Iran Shipments -- Update,” 2/14/14)

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“A group of insurers warned shipowners this week to be careful when signing deals to carry Iranian oil because the United States has not been able to clarify whether insurance claims will be paid after the suspension of sanctions ends in July…The easing of the insurance sanctions for ships has been expected by analysts to increase Iran's crude oil exports, although data from Tehran's largest customers - China, India, Japan and South Korea - has so far shown steady to lower shipments since the deal was signed in November. Uncertainty over post-July insurance payments, however, has made the suspension of sanctions on ship cover ‘of very limited, if any, value to shipowners,’ the group of shipping insurers said in a note this week. The International Group of P&I Clubs said it was uncertain if insurance claims that arose while sanctions are eased would be honoured if they remained unpaid after July 20. The International Group has been in talks with the U.S. Office of Foreign Assets Control but OFAC has not been able to confirm whether payments for claims could be made after July 20 when sanctions could possibly be reimposed, the group said. ‘Members should proceed on the basis that beyond 20 July 2014 (or any extension of the initial six-month period), clubs will not be able to respond to any claims presented in respect of liabilities arising during the 20 January-20 July suspension period,’ the group said in its note…Shipowners ‘are strongly recommended not to enter into contracts for transportation of crude oil, petroleum oil and petrochemical products’ without consulting their individual P&I insurers, the International Group said.” (Reuters, “Insurers group sounds alarm over Iran ship insurance,” 1/30/14)

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“For six months from Monday, the European Union and the United States have eased some sanctions including restrictions on ship insurance, which became available for the first time since mid-2012. Vessels transporting Iranian crude have previously been left with limited alternatives, mostly set up by importers. ’Normal services have been partially resumed in relation to those activities, which are now permissible for a temporary six-month period subject to further review and possible extension thereafter,’ said Andrew Bardot, executive officer of the International Group of P&I clubs, an association whose members insure the majority of the world's tanker fleet. ‘As from July 21, there will no longer be this flexibility, obviously pending any further extension or renewal’…The International Energy Agency said in its monthly report on Tuesday that Iranian exports rose in December by 50,000 bpd to 1.15 million bpd, and could increase further now shipments are easier to insure. ’The relaxation in tanker insurance provisions in the current sanctions regime may lead to small increases in Iranian crude exports to existing customers in the short term,' said the IEA, which advises industrialised countries on oil policy.” (Reuters, “Iran's oil sales rise as sanctions pressure eases - sources,” 1/22/14)

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“Japan's main private ship insurer, the Japan P&I Club, said it has resumed normal coverage for tankers carrying Iranian oil, a step in easing imports in line with U.S. and EU moves as relations with Tehran thaw…The international P&I club, of which JPI is a member, resumed normal coverage of $7.6 billion per ship, including $1 billion for oil spills, on Monday as European Union reinsurance became available again for the first time since mid-2012, a JPI official said…’The resumption of cover is very much restricted to that which is expressly permitted under the implementing EU and U.S. measures,’ Andrew Bardot, executive officer of the International Group of P&I clubs, said separately. 'It does not fully open up the trade or the insurance of the trade. It is restricted to current importers based on their import quotas and it is for six months only’…Japan's sovereign scheme will stay in place for the time being, but will no longer be liable for insurance payments now that buyers can obtain JPI coverage, a government official said. The government is not ready to scrap the sovereign scheme just yet, as the sanctions relief is regarded as temporary, the official said. Japan's parliament would have to authorise any extension of the scheme past the fiscal year ending March 31.” (Reuters, “Japan resumes private insurance for Iran oil imports,” 1/21/14)

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"Europe is days from suspending a ban on reinsuring tankers hauling Iranian oil, a measure that helped cut the nation’s crude exports by more than 50 percent when it was implemented. The six-month relaxation starts Jan. 20 and will allow companies following European Union law to reinsure tankers shipping Iran’s oil to India, China, Japan, South Korea, Turkey and Taiwan, an EU official told reporters in Brussels today, speaking on condition of anonymity because he wasn’t authorized to be quoted by name. The step affects most of the world fleet because 90 percent of all merchant vessels are covered by members of the London-based International Group of P&I Clubs…Entities designated for sanctions are still barred from buying coverage, Andrew Bardot, the London-based executive officer of the International Group of P&I Clubs, said by e-mail today. The U.S. Treasury’s Office of Foreign Assets Control is 'on the same track' as the European Commission, Bardot said, citing talks with both organizations. The International Group is a claims-sharing pool for insurance mutuals around the world. Its members must follow EU law to be part of the group and they cover most of the world’s merchant ships for risks including oil spills. The commission is the European Union’s executive arm…The EU will relax the ban on Jan. 20, once the International Atomic Energy Agency has certified the conditions in the November agreement have been met, the official said.” (Bloomberg, “Europe Days From Lifting Reinsurance Ban on Iran Oil Exports,” 1/16/14)

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"Most loans to buy vessels require insurance against risks including spills and collisions, and banks will normally only accept cover provided by members of the International Group of P&I Clubs, according to Harry Theochari, a London-based shipping and asset-finance lawyer at Norton Rose LLP. The group’s members insure about 95 percent of the tanker fleet and follow European law, which will prohibit all such cargoes from July 1 as part of international efforts to curb Iran's nuclear program... 'The banking is a separate issue that we don’t think was at all foreseen and is potentially more far-reaching,' said Andrew Bardot, London-based secretary and executive officer of the International Group of P&I Clubs." (Bloomberg, "Bank Foreclosures Loom for Tanker Owners Hauling Iranian Crude," 5/30/2012)

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"Asian shippers are seeking new sources of insurance for Iranian cargoes because the European Union’s embargo extends to 95 percent of the world’s tankers that are covered by the 13 members of the London-based International Group of P&I Clubs." (Bloomberg, "Iran Ship Insurer Says Asian Operators Asking to Cover Tankers," 5/14/2012)

"European shipowners could violate impending EU sanctions against Iran without even knowing it every time they set sail, leaving them vulnerable to being blacklisted, the managing director of leading industry group Intertanko said on Friday... Intertanko's members own the majority of the world's tanker fleet." (Reuters, "Refuelling EU shippers may violate Iran sanctions," 5/11/2012)

"India has given state-run insurers approval to provide limited cover to its ships transporting Iran's oil. . . Domestic insurance firms are allowed to provide ship owners carrying Iranian oil $50 million in cover against pollution and personal injury claims, also known as protection and indemnity (P&I) insurance, Devli said. They will also provide hull and machinery cover of $50 million, to protect ships against physical damage. General Insurance Corp of India will be the re-insurer and cover will be extended by any of four state-run non-life insurance firms: United India Insurance, New India Assurance Co. Ltd., National Insurance Co. Ltd. and the Oriental Insurance Co. Ltd. 'We have received a letter from the shipping ministry ... saying General Insurance Corp has provisionally been allowed to arrange cover,' said a source at a state-run refiner." (Reuters, "India insures Iran oil imports to safeguard flow -sources," 7/10/12)

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"Indian shipping firms will continue to transport Iranian crude even if limited insurance coverage due to tightening Western sanctions leaves them financially exposed to a spill or accident, a top executive and industry sources said... Shipping Corp of India, which is the country's largest shipping firm, Great Eastern and other Indian tanker firms have asked state insurers to step in and provide up to $50 million in third-party liability coverage per tanker voyage. The amount is a fraction of the typical $1 billion coverage that a supertanker carrying around 2 million barrels of crude would have from reinsurers against personal injury and pollution claims. India's shipping companies would run the risk of shipping the crude even though they would be liable for any claims above $50 million in the case of an incident, industry sources said... The shipping firms have sent their request to state insurers United India Insurance, General Insurance Company, New India Assurance Co. Ltd., National Insurance Co. Ltd. and the Oriental Insurance Co. Ltd., said a shipping source. The shipping and finance ministries were also looking at the proposal." (Chicago Tribune, "Indian firms to carry Iran crude despite reduced insurance," 4/24/12)

"India has given state-run insurers approval to provide limited cover to its ships transporting Iran's oil. . . Domestic insurance firms are allowed to provide ship owners carrying Iranian oil $50 million in cover against pollution and personal injury claims, also known as protection and indemnity (P&I) insurance, Devli said. They will also provide hull and machinery cover of $50 million, to protect ships against physical damage. General Insurance Corp of India will be the re-insurer and cover will be extended by any of four state-run non-life insurance firms: United India Insurance, New India Assurance Co. Ltd., National Insurance Co. Ltd. and the Oriental Insurance Co. Ltd. 'We have received a letter from the shipping ministry ... saying General Insurance Corp has provisionally been allowed to arrange cover,' said a source at a state-run refiner." (Reuters, "India insures Iran oil imports to safeguard flow -sources," 7/10/12)

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"Indian shipping firms will continue to transport Iranian crude even if limited insurance coverage due to tightening Western sanctions leaves them financially exposed to a spill or accident, a top executive and industry sources said... Shipping Corp of India, which is the country's largest shipping firm, Great Eastern and other Indian tanker firms have asked state insurers to step in and provide up to $50 million in third-party liability coverage per tanker voyage. The amount is a fraction of the typical $1 billion coverage that a supertanker carrying around 2 million barrels of crude would have from reinsurers against personal injury and pollution claims. India's shipping companies would run the risk of shipping the crude even though they would be liable for any claims above $50 million in the case of an incident, industry sources said... The shipping firms have sent their request to state insurers United India Insurance, General Insurance Company, New India Assurance Co. Ltd., National Insurance Co. Ltd. and the Oriental Insurance Co. Ltd., said a shipping source. The shipping and finance ministries were also looking at the proposal." (Chicago Tribune, "Indian firms to carry Iran crude despite reduced insurance," 4/24/12)

"India has given state-run insurers approval to provide limited cover to its ships transporting Iran's oil. . . Domestic insurance firms are allowed to provide ship owners carrying Iranian oil $50 million in cover against pollution and personal injury claims, also known as protection and indemnity (P&I) insurance, Devli said. They will also provide hull and machinery cover of $50 million, to protect ships against physical damage. General Insurance Corp of India will be the re-insurer and cover will be extended by any of four state-run non-life insurance firms: United India Insurance, New India Assurance Co. Ltd., National Insurance Co. Ltd. and the Oriental Insurance Co. Ltd. 'We have received a letter from the shipping ministry ... saying General Insurance Corp has provisionally been allowed to arrange cover,' said a source at a state-run refiner." (Reuters, "India insures Iran oil imports to safeguard flow -sources," 7/10/12)

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"Indian shipping firms will continue to transport Iranian crude even if limited insurance coverage due to tightening Western sanctions leaves them financially exposed to a spill or accident, a top executive and industry sources said... Shipping Corp of India, which is the country's largest shipping firm, Great Eastern and other Indian tanker firms have asked state insurers to step in and provide up to $50 million in third-party liability coverage per tanker voyage. The amount is a fraction of the typical $1 billion coverage that a supertanker carrying around 2 million barrels of crude would have from reinsurers against personal injury and pollution claims. India's shipping companies would run the risk of shipping the crude even though they would be liable for any claims above $50 million in the case of an incident, industry sources said... The shipping firms have sent their request to state insurers United India Insurance, General Insurance Company, New India Assurance Co. Ltd., National Insurance Co. Ltd. and the Oriental Insurance Co. Ltd., said a shipping source. The shipping and finance ministries were also looking at the proposal." (Chicago Tribune, "Indian firms to carry Iran crude despite reduced insurance," 4/24/12)

"CEO of General Insurance Corporation of India (GIC Re) have voiced readiness to boos ties with Iranian firms by providing the Iranian market with required insurance coverage." (April 2017)

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"The government will provide a 10 billion rupee sovereign guarantee to back local insurance for refineries using Iranian oil, two government sources said, as it tries to boost imports paid for in local currency to ease pressure on the rupee . . . 'It was finalised yesterday in a meeting with the petroleum secretary. An energy pool will be set up with a sovereign guarantee,' one of the sources, both of whom have direct knowledge of the matter, said . . . 'The issue has been resolved. GIC (local reinsurer General Insurance Corp) will manage the pool. In case there is any mishap or something, then they will pay,' the second source said. The sources said apart from the 10 billion rupees sovereign backing, GIC and oil companies will provide 5 billion rupees each to the pool . . . With the start of this re-insurance cover local insurers will delete the sanctions clause from the existing annual policy of Indian refiners processing Iranian oil, two oil industry sources told Reuters." (Reuters, "Government to back up insurance for refiners processing Iranian crude," 9/18/13)

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"India is thinking of providing a 20 billion rupee ($327 million) state guarantee to back local insurance for refineries that use Iranian oil and therefore cannot get foreign cover due to Western sanctions, an industry source said. The government has previously ruled out such a guarantee but a drop in India's currency to record lows means it is keen to boost oil imports from Iran, which has agreed to be paid in rupees, as dollar-priced oil imports have grown more expensive. he finance ministry is now willing to consider covering half of a planned total 40 billion rupee fund for underwriting such insurance, to which the oil ministry and local insurers would contribute 10 billion rupees each. The finance ministry decided to consider a 'facility/sovereign guarantee' of 20 billion rupees at a meeting chaired by the financial services secretary on July 31, the source said on Thursday... If the finance ministry suggestion goes ahead, Indian refiners would be able to take up local insurance backed by Indian reinsurer General Insurance Corp (GIC), which can tap the government fund and sovereign guarantee... The finance ministry plans to allow refiners to take up insurance cover from companies outside India, as well as domestic providers, if they are not limited by that clause, the source said. State-run refiner MRPL (MRPL.NS), which used to be Iran's biggest Indian client until insurance problems prompted it to stop purchases in April, has already indicated that it will resume Iranian imports from this month." (Reuters, "India mulls guarantee for insuring refiners that use Iran oil -source," 8/8/13)

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"'MRPL would take all necessary steps for recommencement of import/processing of Iranian crude oil in its refinery,' MRPL P.P. Upadhya wrote in a June 29 letter to Oil Secretary Vivek Rae. Upadhya referred in the letter to meetings with officials from the oil ministry and local reinsurer General Insurance Corp. (GIC) in the letter, copy of which was made available to Reuters, for the plan to resume imports from Iran... GIC said that 'as long as the waiver on import of crude oil from USA exists, it is very likely that the overseas reinsurers would not refuse the claim whenever it arise, even though the implication of waiver is not clear,' the letter said, citing a June 27 meeting with GIC. GIC would be able to settle any claim up to 5 billion rupees, so far the maximum that has arisen in Indian refining sector, without depending on overseas reinsurers, Upadhya wrote. 'GIC pointed out that in such a scenario, a calculated business risk may be taken by MRPL, similar to what is being taken by Essar, if they desire to recommence processing of Iranian crude oil at their refinery,' Upadhya wrote in the letter." (Reuters, "MRPL Aims to Resume Iran Oil Imports," 7/1/2013)

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"Two of India's largest shipping companies which carry crude from Iran haven't yet been able to find suitable insurance cover, a situation which could hurt the flow of oil from the sanctions-hit Middle Eastern country.  . . . India, which has decreased but not stopped crude purchases from Iran, has been trying to make its own arrangements to bring in the oil. Last month, state run insurer United India Insurance Co. Ltd. offered cover to Indian shippers, while General Insurance Corp. offered to reinsure. Mr. Hajara had said then that the shipper may agree to the covers -- about a hundredth of what Europe's so-called Protection and Indemnity or P&I Clubs offer -- but he now appears to have changed his mind. The Indian insurer has offered $50 million for protection and indemnity -- or third-party insurance -- and an additional, similar amount for hull and machinery cover. But these are not enough, said Mr. Hajara." (Wall Street Journal, "Shipping Corp: Insurance Cover for Iran Crude Not Adequate," 8/8/12)

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"India, the third-biggest buyer of Iranian oil, will offer state-backed insurance to tankers, helping the nation’s biggest sea carrier to resume cargoes from the Persian Gulf nation hit by international trade sanctions.

Shipping Corp. of India will soon start services to Iran as Indian insurers have agreed to give as much as $100 million of cover per voyage, Chairman Sabyasachi Hajara said without specifying a timeframe. Prior to the sanctions, European companies provided unlimited protection against risks including oil spills and collisions, he said…Hajara said insurers including United India Insurance Co. and General Insurance Corp. of India are offering a lower cover for Iranian shipments compared with their European counterparts because the sanctions blocked their access to reinsurance.

The Indian insurers are offering $50 million of hull and machinery cover and $50 million of protection and indemnity per voyage, he said…Shipping Corp. is going ahead with the plan as its studies have shown that carriers in the Iran-India route haven’t sought any claims from insurance companies in the past 10 years, he said. Still, potential liabilities may run into “billions of dollars,” Hajara said." (Bloomberg, "Iran Oil Shipping To Resume As Insurers Step In," 8/2/12)

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"India has been forced to seek its own arrangements to insure its purchases of Iranian oil, officials said, even as it reduces imports under pressure from U.S. and European Union sanctions.

Indian state-owned insurers, shipping lines and government officials met to discuss the situation in Mumbai on Wednesday. India's state-run insurance firms have agreed to offer coverage of up to $50 million for each Indian ship carrying Iranian crude. The state-run General Insurance Corp. will reinsure the cargoes. Such coverage is much lower than the up to $1 billion that European insurers would normally give per ship to cover third-party claims in the event of an oil spill or other accident…The problems facing India show the effectiveness of policies aimed at squeezing Iran financially in a bid to force the country to take measures that guarantee its nuclear program isn't being used for weapons development. Tehran says the program is for peaceful purposes.

'This figure is low but we can call it a workable solution,' the executive said. 'Liabilities in case of an accident in Indian or Iranian waters is also less than in U.S. waters.'

The Indian shipping industry was also pushed to accept low insurance coverage because it doesn't want to see its business going to Iranian tankers, the executive said.

'The petroleum ministry wants to bring crude in Iranian vessels which will hurt business for Indian ships, so we accepted this figure,' he said." (The Wall Street Journal, "Insurance Woes Slow India Deals for Iran Oil," 7/11/2012)

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"India has given state-run insurers approval to provide limited cover to its ships transporting Iran's oil, allowing refiners to avoid any interruption in supplies because of the constraints of an Iranian fleet struggling with tough Western sanctions . . . General Insurance Corp of India will be the re-insurer and cover will be extended by any of four state-run non-life insurance firms: United India Insurance, New India Assurance Co. Ltd., National Insurance Co. Ltd. and the Oriental Insurance Co. Ltd. 'We have received a letter from the shipping ministry ... saying General Insurance Corp has provisionally been allowed to arrange cover,' said a source at a state-run refiner."(Reuters, "India insures Iran oil imports to safeguard flow -sources," 7/10/12)

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"United India Insurance Co. has agreed to provide protection and indemnity cover to Indian tankers carrying oil from Iran with General Insurance Corp. offering reinsurance, two people with knowledge of the matter said Tuesday. The offer bring some relief to Indian shipping companies that aren't getting covers from European insurers since July 1 for carrying shipments from Iran, which is facing sanctions from the U.S. and European Union for its decision to continue with an alleged nuclear weapons program . . . While United India Insurance executives weren't available to comment, an executive from General Insurance Corp. said there will be a $50 million P&I cover and a separate amount for hull and machinery. 'The cover is for all Indian shipowners,' the executive said." (Wall Street Journal, "India Insurer to Cover Ships Carrying Iran Oil," 7/10/12)

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"The United States earlier this month extended exemptions from its tough, new sanctions on Iran's oil trade to seven more economies including India . . . Indian state insurers led by General Insurance Corp (GIC) had agreed to provide $50 million of cover for the ships carrying Iran crude from July but this has been delayed as the insurance regulator has not yet given its approval. The Shipping Ministry has said it has "no objection" to refiners buying oil from Iran on a delivered basis 'for 6 months with effect from July 1, 2012 or until GIC provides P&I/H&M (Hull and Machinery) cover or U.S., EU sanctions are lifted; whichever occurs earlier,' said a source privy to the letter." (Reuters, "Exclusive: India allows use of Iran ships for oil imports," 6/25/12)

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"India is speeding up efforts to ensure insurance cover for tankers that bring in crude-oil from Iran, about a week before the onset of European Union sanctions that will effectively cut off insurance services for oil shipments from the Islamic Republic…But India continues to face logistical challenges in importing oil from Iran as the EU sanctions, which come into effect on July 1, are affecting its ability to get insurance for ships carrying Iranian crude...the oil ministry has also asked the finance ministry to press state-owned reinsurer General Insurance Corp. to provide insurance cover to Indian ships carrying crude from Iran. The oil ministry is also working to get sovereign guarantees for Indian vessels, he added."  (Wall Street Journal, "India Working on Insurance for Iran Oil Imports," 6/22/12)

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"Indian shipping firms will continue to transport Iranian crude even if limited insurance coverage due to tightening Western sanctions leaves them financially exposed to a spill or accident, a top executive and industry sources said... Shipping Corp of India, which is the country's largest shipping firm, Great Eastern and other Indian tanker firms have asked state insurers to step in and provide up to $50 million in third-party liability coverage per tanker voyage. The amount is a fraction of the typical $1 billion coverage that a supertanker carrying around 2 million barrels of crude would have from reinsurers against personal injury and pollution claims. India's shipping companies would run the risk of shipping the crude even though they would be liable for any claims above $50 million in the case of an incident, industry sources said... The shipping firms have sent their request to state insurers United India Insurance, General Insurance Company, New India Assurance Co. Ltd., National Insurance Co. Ltd. and the Oriental Insurance Co. Ltd., said a shipping source. The shipping and finance ministries were also looking at the proposal." (Chicago Tribune, "Indian firms to carry Iran crude despite reduced insurance," 4/24/12)

"Two of India's largest shipping companies which carry crude from Iran haven't yet been able to find suitable insurance cover, a situation which could hurt the flow of oil from the sanctions-hit Middle Eastern country.  . . . India, which has decreased but not stopped crude purchases from Iran, has been trying to make its own arrangements to bring in the oil. Last month, state run insurer United India Insurance Co. Ltd. offered cover to Indian shippers, while General Insurance Corp. offered to reinsure. Mr. Hajara had said then that the shipper may agree to the covers -- about a hundredth of what Europe's so-called Protection and Indemnity or P&I Clubs offer -- but he now appears to have changed his mind. The Indian insurer has offered $50 million for protection and indemnity -- or third-party insurance -- and an additional, similar amount for hull and machinery cover. But these are not enough, said Mr. Hajara." (Wall Street Journal, "Shipping Corp: Insurance Cover for Iran Crude Not Adequate," 8/8/12)

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"India, the third-biggest buyer of Iranian oil, will offer state-backed insurance to tankers, helping the nation’s biggest sea carrier to resume cargoes from the Persian Gulf nation hit by international trade sanctions.

Shipping Corp. of India will soon start services to Iran as Indian insurers have agreed to give as much as $100 million of cover per voyage, Chairman Sabyasachi Hajara said without specifying a timeframe. Prior to the sanctions, European companies provided unlimited protection against risks including oil spills and collisions, he said…Hajara said insurers including United India Insurance Co. and General Insurance Corp. of India are offering a lower cover for Iranian shipments compared with their European counterparts because the sanctions blocked their access to reinsurance.

The Indian insurers are offering $50 million of hull and machinery cover and $50 million of protection and indemnity per voyage, he said…Shipping Corp. is going ahead with the plan as its studies have shown that carriers in the Iran-India route haven’t sought any claims from insurance companies in the past 10 years, he said. Still, potential liabilities may run into “billions of dollars,” Hajara said." (Bloomberg, "Iran Oil Shipping To Resume As Insurers Step In," 8/2/12)

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"India has given state-run insurers approval to provide limited cover to its ships transporting Iran's oil. . . Domestic insurance firms are allowed to provide ship owners carrying Iranian oil $50 million in cover against pollution and personal injury claims, also known as protection and indemnity (P&I) insurance, Devli said. They will also provide hull and machinery cover of $50 million, to protect ships against physical damage. General Insurance Corp of India will be the re-insurer and cover will be extended by any of four state-run non-life insurance firms: United India Insurance, New India Assurance Co. Ltd., National Insurance Co. Ltd. and the Oriental Insurance Co. Ltd. 'We have received a letter from the shipping ministry ... saying General Insurance Corp has provisionally been allowed to arrange cover,' said a source at a state-run refiner." (Reuters, "India insures Iran oil imports to safeguard flow -sources," 7/10/12)

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"United India Insurance Co. has agreed to provide protection and indemnity cover to Indian tankers carrying oil from Iran with General Insurance Corp. offering reinsurance, two people with knowledge of the matter said Tuesday. The offer bring some relief to Indian shipping companies that aren't getting covers from European insurers since July 1 for carrying shipments from Iran, which is facing sanctions from the U.S. and European Union for its decision to continue with an alleged nuclear weapons program. . . While United India Insurance executives weren't available to comment, an executive from General Insurance Corp. said there will be a $50 million P&I cover and a separate amount for hull and machinery. 'The cover is for all Indian shipowners,' the executive said." (Wall Street Journal, "India Insurer to Cover Ships Carrying Iran Oil," 7/10/12)

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"Indian shipping firms will continue to transport Iranian crude even if limited insurance coverage due to tightening Western sanctions leaves them financially exposed to a spill or accident, a top executive and industry sources said... Shipping Corp of India, which is the country's largest shipping firm, Great Eastern and other Indian tanker firms have asked state insurers to step in and provide up to $50 million in third-party liability coverage per tanker voyage. The amount is a fraction of the typical $1 billion coverage that a supertanker carrying around 2 million barrels of crude would have from reinsurers against personal injury and pollution claims. India's shipping companies would run the risk of shipping the crude even though they would be liable for any claims above $50 million in the case of an incident, industry sources said... The shipping firms have sent their request to state insurers United India Insurance, General Insurance Company, New India Assurance Co. Ltd., National Insurance Co. Ltd. and the Oriental Insurance Co. Ltd., said a shipping source. The shipping and finance ministries were also looking at the proposal." (Chicago Tribune, "Indian firms to carry Iran crude despite reduced insurance," 4/24/12)