Japan P&I Club

"The easing of the insurance sanctions for ships has been expected by analysts to increase Iran's crude oil exports, although data from Tehran's largest customers - China, India, Japan and South Korea - has so far shown steady to lower shipments since the deal was signed in November. Uncertainty over post-July insurance payments, however, has made the suspension of sanctions on ship cover ‘of very limited, if any, value to shipowners,’ the group of shipping insurers said in a note this week. The International Group of P&I Clubs said it was uncertain if insurance claims that arose while sanctions are eased would be honoured if they remained unpaid after July 20.…P&I claims can take one or two years to settle, said a Japan P&I Club official. If claims cannot be settled within six months it would be similar to having no insurance, he said. He said owners of Japanese ships importing Iranian crude oil are staying with Tokyo's sovereign insurance scheme put in place in mid-2012 to keep the oil shipments flowing, and none have moved to get cover from the Japan P&I Club.”  (Reuters, “Insurers group sounds alarm over Iran ship insurance,” 1/30/14) (http://www.unitedagainstnucleariran.com/company/international-group-pi-clubs) (http://in.reuters.com/article/2014/01/30/iran-oil-ship-idINL3N0L42WW20140130)

“Japanese crude buyers are set to switch back to private insurance providers for transportation of Iranian oil, after relief from some EU sanctions goes into effect next week, industry and government sources said. Under the interim deal reached between Tehran and six world powers in November, the European Union on Jan. 20 will suspend for six months a ban on insuring and transporting Iranian oil…If the revision in EU regulations is implemented, the Japan P&I Club (JPI), the country's main ship insurer against pollution and personal injury claims, would be able to resume the normal coverage of $7.6 billion for a tanker carrying Iranian oil, a JPI official said. The switch in insurance is expected to have no impact on Japan's Iranian oil lifting plans, the JPI official added. It remains unclear how soon the switch can occur, as some details need to be worked out. The government will keep the sovereign scheme in place for now, however, as the revision is regarded as temporary, a government official said.” (Reuters, “Japan oil buyers to move back to private insurance for Iran imports,” 1/16/14) (http://in.reuters.com/article/2014/01/16/iran-nuclear-eu-idINL3N0KQ2P520140116)

--

"The Japan P&I club, the country's main ship insurer against pollution and personal injury claims, has also been forced to reduce its cover for a tanker carrying Iranian oil to $8 million from July 1 from the current $1 billion due to EU sanctions." (Reuters, "Japan to limit Iran oil voyages in Mideast Gulf," 4/12/2012) (http://www.reuters.com/article/2012/04/12/us-iran-japan-insurance-idUSBRE83B0F520120412)

"The Japan Ship Owners’ Mutual P&I Association, the body that covers owners against the risk of oil spills and tanker collisions, is likely to lose access to Europe’s reinsurance market after the sanctions come into force July 1, according to the officials... Japan’s sovereign guarantees will replace the $7.6 billion in cover that the country’s P&I club currently buys from the International Group, according to one of the officials." (Bloomberg Businessweek, "Japan Said to Seek Sovereign Cover for Iran Tankers This Month," 5/17/2012) (http://www.businessweek.com/news/2012-05-16/japan-said-to-seek-sovereign-cover-for-iran-tankers-this-month)

“Japan's main private ship insurer, the Japan P&I Club, said it has resumed normal coverage for tankers carrying Iranian oil, a step in easing imports in line with U.S. and EU moves as relations with Tehran thaw. Japan oil buyers were the hardest hit by the shipping insurance limits in Western sanctions because they chose to continue to use Japanese tankers for deliveries…The international P&I club, of which JPI is a member, resumed normal coverage of $7.6 billion per ship, including $1 billion for oil spills, on Monday as European Union reinsurance became available again for the first time since mid-2012, a JPI official said…'The resumption of cover is very much restricted to that which is expressly permitted under the implementing EU and U.S. measures,’ Andrew Bardot, executive officer of the International Group of P&I clubs, said separately. 'It does not fully open up the trade or the insurance of the trade. It is restricted to current importers based on their import quotas and it is for six months only’…Japan's sovereign scheme will stay in place for the time being, but will no longer be liable for insurance payments now that buyers can obtain JPI coverage, a government official said. The government is not ready to scrap the sovereign scheme just yet, as the sanctions relief is regarded as temporary, the official said. Japan's parliament would have to authorise any extension of the scheme past the fiscal year ending March 31.” (Reuters, “Japan resumes private insurance for Iran oil imports,” 1/21/14) (http://www.unitedagainstnucleariran.com/company/international-group-pi-clubs) (http://uk.reuters.com/article/2014/01/21/iran-nuclear-japan-idUKL3N0KV37B20140121)