Iran's Economy Ministry Guarantees Insurance Cover for Iran-India Trade
TEHRAN (Tasnim) – Weeks after oil and container trade between India and Iran was disrupted due to uncertainty over insurance cover, Iran's economy ministry has guaranteed to underwrite insurance coverage for trade between the two countries.
“The Economy and Finance Ministry has agreed to issue such sovereign guarantees regularly and to present them to the companies and the ships,” said Mohammad Ebrahim Amin, head of Iran's Central Insurance Company.
Insurance covers for trade exchanges are midium in duration, but there are some three-month-long as well as short-term ones, he said, adding that change of the government and the introduction of a new economy minister was the reason behind the delay in extending some of the insurance covers that disrupted trade between Iran and India for some days.
Oil and container trade between India and Iran had been disrupted due to uncertainty over insurance cover, leaving some ships stranded outside ports in both countries.
European Union sanctions against Iran meant insurers based in the European Union -- which accounts for the majority of cover for the tanker market -- cannot insure Iranian oil and other shipments, leading to the emergence of new, untested insurance providers.
A three-month approval by India for Iran's Kish P&I and Moallem Insurance Co. to cover container and tanker vessels calling at Indian ports that had lapsed on Sept. 27, but it is now effective under the newly achieved agreements with the Iranian cconomy ministry, with the exception that Moallem Insurance Co has been replaced with Qeshm United Insurance Company.
India imported $11.59 billion of oil in 2012/13 from Iran, while its exports to Iran were worth $3.35 billion, according to the website of its commerce ministry.