Ships get relief from piracy related insurance premium at Indian ports

NEW DELHI(PTI):Ships entering or leaving Indian ports are not required to pay a piracy related additional insurance premium now, a move that would help thousands of the vessels. The development has come after seas near the country’s western coast were removed from the list of the High Risk Areas (HRA) for piracy. About 22,000 ships, that called on Indian ports between 2010 and 2015, paid an estimated additional war risk premium (AWRP) of about Rs.8,500 crore.

SMOOTH SAILING: Ships coming to or leaving Indian ports do not have to pay additional war risk premium. File photo


“Ministry of Shipping took up the issue of redrawing of the HRA Line back to 65 Degrees E (from 78 Degrees E) in the International Maritime Organization and as a result the HRA was redrawn at 65 Degrees E,” the ministry said in a statement.

“Thereby, the ships coming to or leaving Indian ports do not have to pay AWRP now,” the statement said.

Earlier, the IMO and members of the Contact Group on Piracy off the Coast of Somalia (CGPCS) had decided to move the longitude marking of the HRA from 65 Degrees to 78 Degrees East, extending the high risk area closer to the Indian coastline. A host of steps taken to combat piracy in the Indian Ocean and the country getting the opportunity to co-chair a global body resulted in redefining the high risk zone, the statement said. At the CGPCS’ recent meeting in Mahe, India was chosen to co-chair the Working Group on improving maritime situational awareness in the region through consensus.The CGPCS was set up as a group of affected nations, industry associations and multilateral agencies to take steps for checking piracy in the Indian Ocean.

Posted by on June 7, 2016. Filed under Economy. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.