GIC Re to withdraw marine hull war risk cover in high-risk regions

Reinsurer withdraws marine hull war risk cover across key global hotspots, including West Asia and parts of the Black Sea, citing rising geopolitical tensions

General Insurance Corporation of India (GIC Re) said it will stop covering hull war risks in marine hull policies in several high-risk global regions effective from late March 1, 2026.

 

In a notice, the reinsurer said, “This Notice of Cancellation shall be effective from 1900 hrs on 01.03.2026 and GIC Re will cease to cover the Marine Hull War risks from 1900 hrs on 03.03.2026.”

 

The move comes amid rising geopolitical tensions in parts of West Asia and the Strait of Hormuz, which accounts for nearly 20 per cent of global oil and trade routes. This region has faced heightened security tensions in the past few years.

   

This applies to vessels in the high-risk zone, including Pakistan waters; the Persian or Arabian Gulf and adjacent waters or ports (including the Gulf of Oman); Iran and all other countries under sanctions by the UN, UK, US or EU; specific zones of the Sea of Azov and Black Sea; and waters of Ukraine, Russia or Belarus. It also termed certain areas of the Indian Ocean, Gulf of Aden and southern Red Sea as high-risk zones.

 

The reinsurer also said breach of warranty will not be available in any of these zones. In case any vessel passes through this area, calls at any port located in this area, or is dry-docked in any of these areas, it will be a breach of warranty.

 

Shipowners operating international routes will now have to review their insurance arrangements carefully to ensure continued protection beyond March 3.

 

The revised High Risk Areas (HRA) include Pakistan waters, the Persian or Arabian Gulf and adjacent waters and ports, including the Gulf of Oman; Iran and all other countries under sanctions by the UN, UK, US or EU; and the Sea of Azov and parts of the Black Sea defined by specific geographical coordinates. The list also covers waters of Ukraine, Russia and Belarus, as well as parts of the Indian Ocean, Gulf of Aden and southern Red Sea.

 

GIC Re has made it clear that breach of warranty cover will not be available in respect of any of these seven zones. Therefore, if a vessel passes through, calls at a port, or is dry-docked in any of the listed areas, it will be treated as a breach of warranty under the policy. Shipowners and operators will not have war risk protection from GIC Re for operations in these regions after the cut-off date.

 

Apart from GIC Re, some international reinsurers have also issued notices of cancellation in the region.