Indian insurance companies have stopped providing cover for Iranian cargoes including crude oil as U.S. sanctions on the Middle Eastern country loom, The Indian Express reported.
Insurance sector officials said insurers New India Assurance Co. Ltd. and United India Insurance Co. Ltd. as well as reinsurer General Insurance Corp. of India, or GIC Re, have stopped offering cover to goods imported from Iran.
GIC Re relies on global reinsurers to hedge the risks of Indian insurers. But European and U.S. reinsurers have ceased giving any cover for Iran-related activities, making it difficult for Indian insurance companies to handle risks, according to the report.
Sources said Iran began providing insurance for crude oil export to India as European reinsurers no longer offer cover to companies importing Iranian oil, Financial Tribune reported.
In May, the U.S. withdrew from the 2015 Iran nuclear pact, indicating that sanctions suspended under the deal will be reinstated. The first U.S. sanctions on Iran will start Aug. 6, and the second set will begin Nov. 4, according to The Indian Express.