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Member, Beacon International Group, Ltd.
LONDON (Reuters)—Iran's biggest crude oil tanker operator, NITC, said Friday its club of ship insurers had declined to renew policy cover for the coming year due to the impact of tightening sanctions in the European Union.
Western nations suspect Iran is seeking to develop a nuclear bomb, although Tehran says the program is peaceful.
NITC gets its third-party liability insurance and pollution cover from the P&I Club market, which are marine insurers owned by shipping clients.
"NITC has found itself caught up in a situation of tightening sanctions as a totally innocent party, along with some 100 other Iranian shipping companies," NITC’s chairman and managing director, Mohammad Souri, said in a statement.
Mr. Souri said NITC hoped for an early resolution of this matter and "speedy renewal of cover" from international group clubs.
"In the meantime, the company has been obliged to ensure that alternative P&I arrangements are in place for all ships trading in its international fleet, up to the required level of $1 billion of pollution cover for each incident," he said.
"That cover is being provided by a mixture of fixed-premium insurers and other insurance companies based outside the E.U., with adequate and suitable reinsurance provision."