New Delhi has also extended permits to insurance companies from other countries amid the Middle East conflict
India has expanded the pool of Russian shipping insurers eligible to provide cover to vessels docking at its ports.
New Delhi has also extended permits to various other insurance companies as it seeks to provide cover for ships amid an increase in shipping traffic at its ports due to the Middle East conflict.
Nearly100 shipsare either waiting or seeking berthing at the port of Vizhinjam in Kerala alone, Shashi Tharoor, a lawmaker from the southern state, posted on X.
The Directorate General of Shipping said the number of Russian insurers eligible to provide cover to vessels has increased to 11 from eight, according to Reuters.
Gazprom Insurance Ltd., Rosgosstrakh Insurance Co., and Balance Insurance JSC wereaddedto the directorate’s list, Bloomberg reported. Gazprom and Rosgosstrakh have approvals until February 19, 2027, while Balance’s term ends on August 19 of next year. Rosgosstrakh is under US sanctions.
Approvals for Soglasie Insurance Co. Ltd., Ugoria Group of Insurance Cos., Sberbank Insurance, and ASTK Insurance LLC will remain valid through February 20, 2027, India’s shipping agency said.
Dubai-based Islamic Protection & Indemnity Club has also been allowed to provide marine cover until February 19, 2027, it added.
The Russian entities are not a part of the International Group of Protection and Indemnity (P&I) clubs.
Members of the Europe-based International Group of P&I Clubs provide marine liability cover for about 87% of the world’s ocean-going tonnage, but do not cover Russian vessels due to sanctions.
P&I clubs are mutual insurance associations that provide liability cover for shipowners, including risks such as oil spills, cargo damage, and crew injury.
The Russian firms mostly provide cover to vessels loaded with Russian oil as Western service providers skip Russian cargoes due to tougher sanctions, Reutersreported.
Insurance is vital for maritime transport, particularly energy cargoes, due to the risk of spills.
India is the world’s third-biggest oil importer and consumer. New Delhi is relying on Russian oil to meet most of its demand as the US-Israeli war on Iran has effectively shut the Strait of Hormuz.
On Sunday, the US extended awaiverallowing foreign buyers to take Russian crude loaded on tankers by about one month to mid-May.
(RT.com)
