India Expands Russian Marine Insurance Options

India has expanded the pool of Russian insurers eligible to provide marine cover to ships docking at its ports, increasing the number to 11 from eight, according to its Directorate General of Shipping.

• India has permitted Russia’s Gazprom Insurance and Rosgosstrakh Insurance to provide protection and indemnity coverage until February 19, 2027, while the registration of Balance Insurance is valid until August 19, 2026.
• The South Asian nation has also extended the registration of Russia’s Soglasie Insurance, Sberbank Insurance, Ugoria Insurance Group and ASTK Insurance until February 20, 2027, to provide protection and indemnity (P&I) cover for ships.
• India, the world’s third-biggest oil importer and consumer, is relying on Russian oil to meet most of its demand using a temporary waiver as the U.S.-Israeli war on Iran keeps the Strait of Hormuz effectively closed.
• Insurance is essential for maritime transport, particularly oil cargoes, which are held to the highest safety standards because of the risk of spills.
• The Russian firms mostly provide cover to vessels loaded with Russian oil as Western service providers mostly stay away from Russian cargoes due to tougher sanctions.
• Russian entities are not a part of the International Group of P&I Clubs, which provides liability cover for personal injury or environmental clean-up claims for the majority of the world’s tankers.
• Separately, India has allowed Dubai-based Islamic Protection & Indemnity Club to provide marine cover until February 19, 2027.
• India also has recognized Russia’s VSK Insurance, Sogaz Insurance and Alfastrakhovanie until February 20, 2030, and Ingosstrakh Insurance until February 20, 2029, for providing P&I cover.

(Reporting by Nidhi Verma; editing by Thomas Derpinghaus)

Photograph: An oil tanker is moored at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia, on Oct. 11, 2022. (AP Photo, File)