Ships plying in Indian ports will not pay additional premiums

Ships entering or leaving Indian ports are not required to pay a piracy-related additional insurance premium now, a move which will help thousands of the vessels.

The development has come after seas close to 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.

“Ministry of Shipping took up the issue of redrawing of the High Risk Area (HRA) Line back to 65 Degrees E (from 78 deg E) in the International Maritime Organization and as a result the HRA was redrawn at 65 deg 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.