Insurance PSUs providing cover to vessels importing Iran oil.

New Delhi: Public sector insurance companies are providing USD 50-million cover to vessels importing crude oil from Iran to India in the wake of US-led global sanctions against Tehran, the government said Tuesday.

"GIC has informed that the insurance cover has been provided by the public sector insurance companies for USD 50 million each for Hull & Machinery and P&I covers. The step taken by the government is aimed at ensuring uninterrupted supply of crude oil from Iran," Shipping Minister G K Vasan told Rajya Sabha.

The Government had suggested to the public sector insurers and General Insurance Corporation of India (GIC) to extend insurance/re-insurance cover to Indian flagships for importing crude oil from Iran to India.

This was "subject to due diligence of assets and fixing up of premium accordingly as is done in normal course," Vasan said.

The insurance companies based in European Union-regulated region have decided to withdraw the Protection and Indemnity (P&I) insurance cover for carrying Iranian oil from July 1 this year.

The EU had issued regulation concerning restrictive measures against Iran which, inter-alia, include prohibition of providing directly or indirectly, financing or financial assistance including financial derivatives, as well as insurance and re-insurance related to the import, purchase or transport of crude oil.

India is one of the major buyers of oil from Iran but the shipments have been hit due to US-led global sanctions against Tehran which have been adopted by EU also.

India imported 17.44 million tonnes of crude oil from Iran last year.

Source : zeenews.india.com