Port insurance norms planned

NEW DELHI: The government has formed a committee under the Indian Ports Association (IPA) to evolve common guidelines for port insurance. It has decided to create a uniform policy for all 12 major ports in the country citing concerns over high insurance cover of the Jawaharlal Nehru Port Trust (JNPT).

“Since revenues of port trusts comes under the income-tax net, there has been a need for a uniform insurance policy.

IPA is working on the details of the policy,” a government official said. According to the official, IPA is working on rough guidelines to be followed for insurance of port equipment. “A comprehensive port insurance policy would be subsequently formulated,” he said.

The government’s concern over the high insurance cover of JNPT has also necessitated a uniform insurance policy. However, according to JNPT officials, it was unfair to compare JNPT with other ports.

“The asset value at JNPT is high because it is a relatively new port. All assets have been procured just about seven years back,” a JNPT official said. Traditionally, port assets have not been insured. In the event of damages to the port due to a shipping line, the shipping line has to compensate the loss to the port.

Or, in the case of cargo damages, the owner claims third party insurance. Insurance is followed along the guidelines of the Marine Insurance Act. The insurance policy is slated to be only rough guidelines for the ports, since each port would have a separate criteria, depending on factors like depreciation and asset value.