Iran: Insurance for Any Oil Tanker Carrying Iranian Crude

Iran said it would give insurance to every oil tanker loading in Iranian ports.

The Chairman of the Iran Insurance Company, Javad Sahamian, said Tehran will provide insurance cover for any oil tanker carrying Iranian crude oil, the country's independent media organisation Iranian Students News Agency (INSA) has reported.

The report did not give details on the level of cover it was offering.

"After the sanctions, Iran extends insurance coverage for every oil tanker loading in Iranian ports," Sahamian said.

He also said Iran "now stands at the 14th place in the ranking of the International Group of P&I Clubs."

The comments follow European sanctions in effect since July 1, 2012 meaning ship owners found carrying Iranian product, either as fuel or cargoes, will lose their P&I Cover from European clubs who account for approximately 90% of the world's shipping tonnage.

Seyed Ataollah Sadr, the Managing Director of Iran's Ports and Maritime Organization, said in July that the Islamic Republic would will give insurance to "any foreign ship that enters Iran's waters" but did not elaborate on how the scheme would work in practice.

The consortium providing the insurance is reported to include domestic insurance firms Kish P&I, itself underwritten by Central Insurance of Iran, and Razi Insurance Company (Razi) who in August was reported by the country's FARS News Agency (FNA) as "ready to join the consortium of domestic companies in this field."

"As regards providing insurance cover for oil tankers in times of sanctions, we have also voiced our preparedness to provide part of the share for oil tankers' insurance," Razi's Managing Director Younes Mazloumi stated.