General Insurance Corporation of India withdraws marine hull war cover in high-risk regions
Change
General Insurance Corporation of India (GIC Re) ceased providing Marine Hull War Risk cover for specified high-risk zones effective 7 pm India time on March 3.
Why it matters
The revised High Risk Areas now include Pakistan waters, the Persian Gulf and adjacent waters (including the Gulf of Oman and Iran), the Sea of Azov and defined parts of the Black Sea, waters of Ukraine, Russia and Belarus, and parts of the Indian Ocean, Gulf of Aden and Southern Red Sea, so transits through these coordinates will fall outside GIC Re's war-risk program. Ship operations and procurement teams must therefore secure replacement war-risk insurance or change routing to avoid uncovered voyages.
Implications
- — Shipowners' insurance procurement teams must secure replacement hull war-risk insurance or voyage-specific war-risk endorsements before any transit of the listed high-risk zones — otherwise war-related damage will be uninsured.
- — Insurance brokers and maritime risk managers for shipping companies must notify clients of the March 3 cut-off and place alternate primary-market or reinsurance covers to maintain continuous protection.
- — Time-charterers' and voyage-charterers' operations teams must re-evaluate voyage orders and obtain contractual war-risk warranties or additional insurance before ordering passages through the listed zones because GIC Re cover will not apply.
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