War Fears May Spike Marine Premiums

Marine cover worth ₹5,000 cr under threat

- NARAYANAN V

THE ESCALATING CONFLICT between Israel and Iran is expected to harden India's marine insurance market, with annual premiums of over ₹5,000 crore. Industry players are warning of a spike in freight costs and insurance premiums due to mandatory war cover for vessels transiting the Red Sea en route to West Asia and Europe.

A spokesperson for Bajaj Allianz General Insurance said the situation has the potential to significantly disrupt maritime operations in the Middle East, especially around the strategic Strait of Hormuz—a key choke point through which nearly 25% of global oil supply passes.