"Talks are in positive directions and could be concluded soon and help resolve the deadlock," sources in government and insurance companies said.
They said the only issues which are yet to be ironed out in the talks between ship owners through INSA (Indian National Ship Owners Association) and insurance companies led by General Insurance Corporation, include insurers' demand for additional USD 20,000 as "war risk premium" per voyage.
The insurers have agreed for USD 50 million coverage per voyage for risk like collision and oil spills, they said.
Meanwhile, government is granting permission for ships carrying Iranian crude oil here on a case-by-case CIF (cost, insurance and freight) basis.
With 17.44 million tonnes of crude oil imported from Iran last year, India is one of the major buyer of oil from that country but the shipments have been hit due to US-led global sanctions against Tehran which have been adopted by EU also.
Though New Delhi is not bound by the US and EU sanctions against Iran, shipments got affected after European insurers withdrew their coverage for the ships carrying Iranian oil.
The European insurers were earlier giving unlimited insurance, as per the damages, against risks like oil spills and collisions. However, war risk premium was not charged by insurers earlier too.
The Indian government has asked state-run insurers in India, including United India Insurance Company and General Insurance Corporation, to provide insurance cover to the shipments, but they are offering lower coverage as their access to reinsurance coverage would be affected by the international sanctions against Iran. (More)
