Reinsurers refuse cover to refineries using Iran oil
George Mathew: Mumbai, Feb 03 2013, 03:47 IST
should organise for a discussion of the insurers to identify the issues involved and attempt to find out possible solutions,” the communication said.
The general insurers are hopeful that some solution can be found out. Otherwise, it will create a severe operational problem for the oil refineries.
“Indian insurers can’t even think of doing it on their own as plants are expensive. They need to go in for reinsurance to hedge their risk. Reinsurers are refusing to give cover to Indian refineries using Iranian oil. We’re negotiating with them as India has cut down oil imports from Iran,” said a top insurance sector source.
As per recent reports, India, which used to be Iran’s second biggest oil client, has proposed to cut oil imports from Iran by 10 to 15 per cent in the next fiscal, and more if Tehran does not lower prices to help cover higher costs resulting from Western sanctions.
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