Indian multi-million- dollar fund to insure Iran crude imports .

[sanddy]

PressTV - India to create multi-million-dollar fund to insure Iran crude imports

India is set to create a multi-million-dollar Energy Insurance Pool (EIP) fund as part of efforts to support local insurers giving coverage to refiners processing Iranian crude oil.

According to The Financial Express report on
Saturday, the Indian government will set up a 20-billion-rupee (about USD 400 million) fund for this end, and will extend sovereign guarantees up to 100 billion rupees (about USD 2 billion) for claims beyond the stated figure.

The measure comes after two major Indian oil refineries, Mangalore Refinery & Petrochemicals Limited (MRPL) and Essar Oil Ltd, said they had difficulty purchasing 100,000 barrels of Iranian oil on a daily basis and would be forced to halt imports from Iran because of insurance problems
stemming from US-led sanctions against Tehran.

Indian economic sources said the country’s Department of Financial Services has proposed the EIP be created within a month.

India’s domestic insurers will contribute ten billion rupees (about USD 200 million) to the
fund out of the reinsurance premium paid to
them by refiners, and the Oil Industry Development Board will pay an equal amount.

The proposal states that these contributions
will be continued annually for the next three
years to eventually build a corpus of 60 billion rupees (about USD 1.2 billion). State-run Oriental Insurance Company and New India Assurance Company will be the initial contributors as they underwrite risks of MRPL and Essar Oil Ltd, respectively.

The sources noted that private Indian insurance firms will also have the option to participate in the EIP fund.

India is among Asia’s major importers of energy, and relies on the Islamic Republic to satisfy a portion of its energy requirements.

 

[kaykay]

well thats a good news.....I knew this will happen and here we go!!!

 

[Capt.Popeye]

PressTV - India to create multi-million-dollar fund to insure Iran crude imports

India is set to create a multi-million-dollar Energy Insurance Pool (EIP) fund as part of efforts to support local insurers giving coverage to refiners processing Iranian crude oil.

According to The Financial Express report on
Saturday, the Indian government will set up a 20-billion-rupee (about USD 400 million) fund for this end, and will extend sovereign guarantees up to 100 billion rupees (about USD 2 billion) for claims beyond the stated figure.

The measure comes after two major Indian oil refineries, Mangalore Refinery & Petrochemicals Limited (MRPL) and Essar Oil Ltd, said they had difficulty purchasing 100,000 barrels of Iranian oil on a daily basis and would be forced to halt imports from Iran because of insurance problems
stemming from US-led sanctions against Tehran.

Indian economic sources said the country’s Department of Financial Services has proposed the EIP be created within a month.

India’s domestic insurers will contribute ten billion rupees (about USD 200 million) to the
fund out of the reinsurance premium paid to
them by refiners, and the Oil Industry Development Board will pay an equal amount.

The proposal states that these contributions
will be continued annually for the next three
years to eventually build a corpus of 60 billion rupees (about USD 1.2 billion). State-run Oriental Insurance Company and New India Assurance Company will be the initial contributors as they underwrite risks of MRPL and Essar Oil Ltd, respectively.

The sources noted that private Indian insurance firms will also have the option to participate in the EIP fund.

India is among Asia’s major importers of energy, and relies on the Islamic Republic to satisfy a portion of its energy requirements.

This is really the workable and doable solution to the problem of insurance cover. Luckily a good part of the General Insurance business in India is run by PSUs so there already exists a mechanism through which GoI can extend its Sovereign Guarantee.

Of course they will be one proviso attached; the cargo will be needed to be shipped in India flagged tankers. Luckily, there again GoI has access to another PSU; Shipping Corpn. of India to carry out the task.

So in summation; the India-Iran oil trade can be kept going. Paid for by barter trade in Indian Rice or Indian Iron Ore or some other commodities and insured by GoI.

@Era_923, @RAPTOR 22; your views?

 

[Sergi]

Americans NOT gona like that

Good move by GOI