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Iran has detained an oil tanker owned by Shipping Corp. of India Ltd. for allegedly causing pollution and is demanding a letter of undertaking worth $1 million for cleanup, The Mint reported.
Sunil Thapar, director of bulk carriers and tanker division of Shipping Corp., said such letters are always given by the ship's insurer. The tanker is insured by The Steamship Mutual Underwriting Association (Bermuda) Ltd., which is part of the International Group of Protection and Indemnity Clubs (IG Clubs). A Shipping Corp. executive, who denied the pollution allegations, said "IG Club is not able to give a letter of undertaking" because of the sanctions against Iran.
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