European Union to ban insurance for tankers that carry Russian oil

Ship insurance companies not only cover the physical damage to the hull and machinery of the vessel but also provide protection and indemnity (P&I) against third-party liability

Last week, the European Union (EU) decided to phase out imports of crude oil from Russia through the sea routes by the year-end. Another notable move is the proposal to deny insurance to oil tankers carrying Russian oil anywhere in the world. The details of the proposed insurance ban are being worked out. The concerns of the vessel owners, especially in Greece and Cyprus, have to be taken on board before imposing an insurance ban. If implemented, the ban can impact easy movement of Russian oil as few shipping companies will be willing to transport oil in uninsured tankers.

Ship insurance