New Delhi, Apr 21, (APAC Media): The Central Government has approved a sovereign guarantee-backed maritime insurance pool of Rs 12,980 crore amidst the Hormuz Strait imbroglio in the West Asian crisis.
This corpus will support external trade even amidst war-related disruptions and economic sanctions.
With Strait of Hormuz regularly getting choked for maritime trade, major reinsurer have withdrawn cover to the shipping companies or hiked premiums significantly.
The government domestic maritime risk coverage corpus will help Undian flagged or controlled headed to or starting from India and shipping companies maintain sovereignty and continue trade in this dire situation.
The Rs 12,980 crore pool will operate for 10 years and can be extended by a further 5 years.
It will cover all maritime risks like hull and machinery, cargo and war risk.
Insurers who are pool members will have a combined underwriting capacity of around Rs 950 crore.
This includes managing liability insurance locally, tailored to Indian shipping conditions and regulatory requirements.
It also includes developing specialized marine underwriting, claims management and legal expertise within India.
