Claim case sharing
US and European Union Regulation on sanctions against Iran
The United States and European Union regulation to prohibit trade with Iran was promulgated and enforced on 27 October 2010. At the same time, a clause named “Sanction Limitation and Exclusion Clause” was drafted and implemented to all marine cargo policies.
According to the new regulations, extensive business activities with Iran are prohibited, including but not limited to transportation of certain key equipment or technology or provision of financing for key sectors of the oil and gas industry in Iran. Transfer of sums of over EUR10,000 must be notified to the designated competent authorities and transfer of over EUR40,000 requires application for prior authorisation, etc.
In relation to marine insurance, it is commonly excluded by marine treaty reinsurance protection with effect from 1 Jan 2011 which means no marine insurance cover can be offered for shipments to Iran and other sanctioned or prohibited trade countries. Penalties of imprisonment and/or a fine will be imposed for the breach of the regulations.
You may visit the Trade and Industrial Department of Hong Kong SAR for more details about the list of sanctions countries: http://www.tid.gov.hk
It is always useful to understand the trading regulations well when dealing with your clients. It is a win-win situation that you can earn more business and clients can enjoy comprehensive cover. This will not only help you smoothen procedures when clients take out cargo insurance with you, but also reassure them that their cargo is protected.