Several maritime insurers have suspended war-risk cover for vessels entering the Persian Gulf and nearby waters amid the ongoing military action on Iran by the US and Israel, effective 5 March, reported Bloomberg.
Notices issued by seven out of the 12 members of the International Group of Protection and Indemnity Clubs indicate that cover will automatically lapse for ships in this region from midnight London time on that date.
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Other aspects of insurance policies remain unaffected, added the news agency.
The clubs withdrawing this specific coverage are the American Steamship Owners Mutual Protection and Indemnity Association; Assuranceforeningen Skuld; Gard; the London P&I Club; NorthStandard; the Steamship Mutual Underwriting Association; and the Swedish Club.
The affected zones extend to parts of the Gulf of Oman and waters near Iran’s border with Pakistan.
War-risk insurance generally protects shipowners from losses due to conflict, terrorism or piracy. The withdrawal of this coverage is expected to affect merchant shipping activity in a region that serves as a vital route for global oil shipments.
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By GlobalDataThe decision comes amid increased instability in West Asia.
The General Insurance Corporation of India said it has ended hull war-risk cover for high-risk areas including the Persian Gulf, Pakistan waters, Iranian ports, and segments of the Sea of Azov, Black Sea, Indian Ocean, Gulf of Aden and southern Red Sea, from this month.
The insurer noted that passage through or docking in these areas will be considered a breach of warranty.
