Iranian insurance share of Oil business

An Iranian oil tanker had an accident in the China Sea, killing 32 and destroying its 60 million dollar cargo, Ebtekar writes. Abdolnaser Hemmati, Director of Central Insurance says that this oil tanker was operated by the National Iranian Tanker Company and had been valued at 32 million dollars. The tanker was carrying condensates under a FOB contract, meaning the buyer had taken delivery of the cargo onboard the ship. This makes it likely that the responsibility will fall on the buyer or the Korean company. 30% of the insurance was covered domestically valued at 10 million dollars, of which 20% was covered by Alborz Insurance and 10% was covered by Mellat Insurance. Of course half of this value was reinsured at the Central Insurance. Mr. Hemmati points out that the remaining 70% was covered by a Norwegian firm. The article concludes that, even though Iranian insurance companies had a small share in the damages caused by this accident, this strategy will reduce their income from insuring sea and oil cargos.

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