Last month, the IG said it was seeking both interim and long term solutions to the continued application of US primary sanctions to US domiciled reinsurers participating in the Group's reinsurance arrangements.
This week, the IG circulated its member P&I Clubs that it had now obtained US authorities approval, and the Group's brokers are currently placing corresponding reinsurance cover outside the US markets.
Due to reinsurers' compliance procedures, it is taking some time to put this cover in place but it is hoped that this will be completed shortly. Once it is in place, clubs will then be able to confirm cover for non-certificated as well as certificated liabilities towards, or incurred by, Iranian interests (other than SDN's or liabilities arising out of prohibited trades).
The ‘fall-back’ cover will have a lower limit and more restrictive terms than the main Group reinsurance programme and should only be seen as a short term solution, the IG warned.
It said that it would continue to engage with the US authorities to secure a comprehensive long term insurance solution to meet all shipowners' needs.
Source- Skuld.