Several maritime insurers have halted war-risk coverage for vessels operating in the Persian Gulf and adjacent waters, effective March 5, due to escalating military tensions involving the US and Israel against Iran. Reports indicate that seven of the twelve members of the International Group of Protection and Indemnity Clubs have issued notices stating that this coverage will automatically terminate for ships in the region at midnight London time on the specified date.
The insurers withdrawing this coverage include prominent organizations such as the American Steamship Owners Mutual Protection and Indemnity Association, Assuranceforeningen Skuld, Gard, and the London P&I Club. The affected areas extend beyond the Persian Gulf to include parts of the Gulf of Oman and waters near Iran’s border with Pakistan. While this specific war-risk insurance has been retracted, other aspects of insurance policies remain intact.
War-risk insurance typically safeguards shipowners against losses stemming from conflict, terrorism, or piracy. The cessation of this coverage is likely to disrupt merchant shipping activities in a region that is crucial for global oil transport. Additionally, the General Insurance Corporation of India has also ceased hull war-risk coverage for high-risk areas, emphasizing that any passage through these zones will be considered a breach of warranty.
