India war-risk pool issues 1,600 policies

India's $1.4 billion marine reinsurance pool had issued 1,608 cargo and hull war-risk policies as of 29 July, the Ministry of Ports, Shipping and Waterways said.

IMAGE: Indian Port of Mundra in Gujurat. Youtube of Adani Ports

The first policy issued under the pool was to state-owned Shipping Corporation of India, providing coverage of up to $1.5 billion. The policies cover crew and cargo liability, pollution liability and wreck removal, the ministry said.

India launched the marine reinsurance pool on 12 May, backed by a sovereign guarantee of INR 12,980 crore ($1.4 billion), to reduce reliance on foreign reinsurers for India-flagged vessels.

The initiative followed several major reinsurers, including India’s state-backed GIC Re, withdrawing war-risk cover or sharply increasing premiums for vessels entering Iranian waters and the wider Persian Gulf amid heightened regional security concerns.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online