General Insurance Corporation of India (GIC Re) will likely manage the Rs 14,000-crore fund. “The aim is to encourage insurance companies to extend coverage to the Indian vessels sailing in the war-struck waters,” one of the officials cited above told Moneycontrol. “The reinsurance fund will back the insurance companies, as their costs have gone up significantly during these times.”
The fund will likely back only those ships that sail in conflict zones such as the Strait of Hormuz,
Hormuz, which has virtually remained closed after the US and Israel launched strikes on Iran on February 28.
Another official said the Reserve Bank of India (RBI) and the Directorate General of Foreign Trade (DGFT) have already announced some steps to help sectors affected by the Iran war and the fund would be in addition to those measures.
