marine cargo insurance

Commercial shipping through the Strait of Hormuz faces immense risks despite remaining technically open, with Indian vessels experiencing significant disruptions and safety concerns. Seafarers exhibit hesitation due to past incidents, impacting normal traffic flow and leading to increased operational costs for shipowners.

India is the only major oil importing country to have not raised prices through the West Asia crisis. With polls now over, the government may have no choice but to pass the cost of rising crude to to the consumer

A recent conflict has shifted control of the vital Strait of Hormuz. Iran may now charge transit fees for ships passing through. This follows a US-Iran ceasefire agreement. The situation signals a significant change in regional maritime control. Global oil trade routes are impacted by these developments.

A temporary ceasefire between Iran and the US is reshaping global markets. Oil prices have dropped significantly as the Strait of Hormuz sees cautious reopening. Stock markets worldwide are experiencing a strong rally, with Indian markets showing substantial gains. This development offers relief from geopolitical tensions and supports economic stability.

According to a government official, multiple options are under consideration, with any decision on establishing such a facility likely to be taken only after the Strait of Hormuz route reopens.

While Iran claims it hasn’t deployed mines in the waterway so far, the deployment of the floating explosive devices could paralyse trade in the region.

Move Aimed At Protecting Buyers From Disruptions

Reinsurers, P&I Clubs Cancel War Cover, In 'Wait & Watch' Mode

Tanker traffic has collapsed, hundreds of vessels are idling near the Gulf, and shipping costs are surging as insurers and shipowners retreat from the conflict zone.

Following India's Operation Sindoor, insurance companies are experiencing a surge in inquiries for war risk insurance. While cargo in transit can still be covered with additional premiums, underwriters are hesitant to provide war risk cover for landed property due to clauses excluding events proximate to war. Reinsurance treaties may be affected during wartime, potentially leading to higher marine cargo insurance rates.

The Cuddalore district Consumer Disputes Redressal Commission has directed United India Insurance Company to pay Rs 1.65 crore to the complainant for a cargo sailing vessel, along with 9% interest. The commission also ordered the payment of Rs 1 lakh for service deficiency and wrongful termination of the marine insurance policy, as well as Rs 10,000 as litigation costs. The complainant had obtained a hull machinery marine insurance policy and paid a part premium of Rs 46,064. The vessel sank along with its cargo due to adverse weather conditions. After a survey assessment, the insurance company rejected the claim, but the commission found the rejection to be arbitrary and unfounded.

Private jets parked at Chennai airport and commercial aircraft bore the brunt of Chennai floods at the airport.

The owner and insurers of one of the world's largest container ships stuck in the Suez Canal face claims totalling millions of dollars even if the ship is refloated quickly, industry sources said on Wednesday.

Bangladesh Cargo Ship MV MAA would be developed as a tourist attraction and will open for visitors on December 29.

Ongoing US-Israel conflict with Iran is impacting India's economy, particularly through rising crude oil prices and potential trade disruptions. Policymakers are monitoring the situation, with immediate effects seen in energy costs and stock market declines. Broader consequences include inflation, current account deficit widening, and supply chain interruptions.

The lockdown has sent the insurance industry into a tailspin with every sector showing a sharp decline in April. Motor insurance was the worst affected with a 49% year-over-year dip in sales to Rs 2,621 crore for the month of April. Most other categories like marine, engineering, aviation, crop and personal accident insurance also saw declines between 5-40%.

Plans to develop the abandoned Bangladesh cargo ship MV MAA into a floating restaurant under Public Private Partnership (PPP) mode near Tenneti Park may be delayed as there is not much progress in the project.