Crackdown on insurance cover could see ships banned from India’s ports

India has tightened up its checks on shipping insurance after vessels entered the country’s ports with invalid protection and indemnity cover because of unpaid premiums.

Shipowners or operators must submit documents at least 72 hours before arriving in a port to allow checks to be made with insurance providers, according to a circular from the country’s maritime authorities.

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Any irregularities or suspicions about the validity of documents will lead to a ship being barred from a port, it said.

“Recent incidents have highlighted instances of vessels with invalid P&I certificates, due to non-payment of premiums, entering Indian ports without proper notification to port authorities,” it said.

“This situation necessitates a more rigorous verification process to ensure the validity and authenticity of P&I certificates, thereby maintaining the integrity and safety of maritime operations in Indian waters.”

Vessel owners must show original copies of P&I documentation, a blue card verifying a vessel’s coverage for pollution damage from oil spills and other hazardous waste, and proof of up-to-date premium payments.

The coverage is vital for third-party liabilities including personal injury, pollution and wreck removal.

The circular also urges shipowners and operators to “meticulously” review their coverage to ensure it meets their operational needs and complies with all domestic and international regulations.

It cited rules introduced in 2012 when European Union sanctions banned insurers from covering tankers carrying Iranian crude anywhere in the world.

At the time, Iran was one of its biggest suppliers to refineries on the west coast of India.

India’s imports from Iran are now negligible. It has instead tapped cut-price Russian oil and, with China, has become one of the biggest importers since the EU banned Russian crude in 2022 due to the invasion of Ukraine.

Nearly 90% of oceangoing tonnage is covered by the 12 members of the International Group of P&I Clubs predominantly based in Europe. India is now looking to set up its own P&I club to reduce its vulnerability to sanctions.