Bermuda Insurance Denied To Iran Ships
Increasingly tough international sanctions are taking their toll on Iran’s nuclear designs and its ballistic missile programme – including the fact Bermuda-based re/insurers are now refusing to provide coverage for the regime’s ships.
The “Wall Street Journal” reports today [Dec. 29] new measures announced by the US Treasury will further hobble Iran’s ability to both insure its ships and use its state-owned commercial fleet to import and export arms as well as prohibited components for the nuclear weapons and long-range missiles the Tehran leadership has said it is committed to building.
“The Treasury first blacklisted Islamic Republic of Iran Shipping Lines [IRISL] in 2008 for allegedly aiding Iran’s arms shipments,” says the newspaper. “The shipping firm has renamed a number of its affiliated companies and often sails its ships under false flags, according to US officials. IRISL has also been charged with repainting its boats to avoid detection.
“Still, US, United Nations and European sanctions are taking a growing toll on IRISL, said US officials. British and Bermudian insurance consortiums, key players in the global market, have stopped insuring its ships.”
Consequently IRISL has increasingly turned to Moallem Insurance — a Tehran-based re/insurer — to underwrite its ships. The US Treasury announced it was barring Americans from doing business with Moallem yesterday along with announcing other measures designed to further isolate Iran from the global economic system.
“ … IRISL has been increasingly isolated from the international financial system and has in turn engaged in deceptive behavior to evade the impact of sanctions and increased scrutiny of its activities – including by relying on an expansive network of front companies, falsifying shipping documents, changing the nominal ownership of vessels, and repainting ships, all to hide the affiliation of vessels with IRISL,” the US Treasury said in a statement.
IRISL was first designated for sanctions by the US Treasury in September 2008 for its provision of logistical services to Iran’s Ministry of Defense and Armed Forces Logistics, the arm of the Iranian military which directly oversees its ballistic missile development and is involved in Tehran’s crash nuclear weapons programme.
As a result of mounting international sanctions, IRISL has been unable to maintain adequate hull and protection-and-indemnity (P&I). In October 2009, the United Kingdom froze all business ties with IRISL under its counter-terrorism authorities, effectively denying IRISL the ability to continue receiving insurance coverage and other services from UK-based P&I insurers.
The Iranian firm then sought insurance coverage from other European providers and P&I insurers which declined to provide this business in light of the recent UK action. For a short period, IRISL did obtain insurance coverage from a Bermuda-based P&I provider until the Bermuda Government imposed measures in January, 2010 to mirror the UK action, forcing IRISL out of the Bermuda insurance market.
“The enhanced focus of US and international sanctions on IRISL’s illicit activities and deceptive practices has, among other things, led IRISL to default on commercial loans and has made it increasingly difficult for Iran to maintain insurance coverage on IRISL ships,” the US Treasury said. “As a result, IRISL has been unable to operate with its full fleet of ships.”
To bad Bermuda is following the illegal and inhumane approach of US/UK. Iran is guilty of desire to be independent and progressive. something that US cannot stand.
Iran has the right to use nuclear technology and has the right to defend itself from aggressive western nations. more than 2500 year history of Iranian(Persians) should teach aggressors that they will be defeated. and Iran will not back off of its rights by threats.