Jakarta. A senior Indonesian official has flagged insurance problems in the Strait of Hormuz passage, saying insurers are hesitant to cover such risky voyages amid the waterway’s blockade.

Traffic uncertainties still cloud the Strait of Hormuz, a vital maritime oil choke point. The Strait's geography has allowed Tehran to use it as leverage and a retaliatory measure against US-Israeli airstrikes. Countless vessels, including Indonesian tankers, are still waiting for their Hormuz exit. Deputy Foreign Minister Arif Havas Oegroseno revealed Thursday that insurers had denied coverage for Hormuz passage, citing its extremely high risks.

“Insurers do not want to cover the vessels if they pass the Strait of Hormuz. … Insurers already have a crystal-clear stance. When the vessels are parked off an island, they are insurable, but not when they go through the narrow waterway. This applies to all vessels, not just the Indonesian [tankers],” Havas told the press in Jakarta on Thursday, shortly after a parliamentary hearing.

Havas went on to say the fighting had also dissuaded the cargo owners.

“In some cases, it is the cargo owners who are hesitant in letting the ships pass through, even if they get covered by insurance. The shipping industry is not as simple, so there are many elements that have to align. So, it’s not just guarantees from the countries [in conflict],” the diplomat said.

A report by The Guardian corroborated Havas’ statement. Maritime insurers cancelled their war risk cover for vessels operating in Iranian waters and the Gulf, the news outlet wrote in early March. The war risk insurance typically covers shipowners for costs and damages resulting from war, terrorism, and piracy.

Two oil tankers belonging to the state-owned energy giant Pertamina are still unable to exit the Strait of Hormuz. A few months ago, Indonesia announced it had received a “positive signal” from Iran regarding the Hormuz passage. Foreign Ministry spokesman Vahd Nabyl A Mulachela admitted that the Hormuz exit would also hinge on the technical matters, “including insurance”.

Just recently, India issued a “strong protest” after three of its seafarers were killed in US airstrikes against oil tankers near the Strait of Hormuz. US President Donald Trump has also suddenly called off his military strikes against Iran, following progress in talks.

Add as a preferred source on Google +