India is waiting for clarity on various operational aspects of the marine reinsurance facility being offered by the US International Development Finance Corporation (DFC), including on the selection criteria for vessels.

Last Tuesday, Washington said that its international investment arm will mobilise its “Political Risk Insurance and Guaranty products” to stabilise international commerce and support American and allied businesses operating in the Middle East.

Oil Ministry is already in touch with US authorities on the marine reinsurance facility for West Asia. Sources said that India is awaiting more details on the marine reinsurance facility from the US Treasury.

“Right now the finer details have not been shared. We understand that US authorities are working on the operational modalities. We require clarity on what will be the criteria for selecting vessels for insurance and what will be the insured amount. We expect some development in the coming week,” said one of the sources.

DFC CEO Ben Black and the US Treasury Secretary Scott Bessent on last Friday (March 6) announced a detailed implementation plan approved by President Donald Trump to deploy maritime reinsurance, including war risk, in the Gulf region in close coordination with the US Central Command (CENTCOM).

The announcement came on the day the international crude oil prices were hitting three-year highs with analysts pointing out that the move was to calm the markets. The US also allowed India to lift more Russian crude oil cargoes to tame market volatility.

“The DFC reinsurance facility will insure losses up to around $20 billion on a rolling basis. This revolving insurance offering will apply only to vessels that meet the criteria. Insurance will focus on hull & machinery and cargo to start,” DFC said.

The organisation has identified best-in-class, preferred American insurance partners. DFC and Treasury are coordinating closely with CENTCOM on next steps in the implementation of this plan, it added.

DFC will continue to provide additional information as it becomes available. Businesses and financial institutions seeking access to DFC’s Maritime Reinsurance product should contact DFC directly, it said on March 6.

Noted shipping news provider Lloyd’s List in a March 6 article said that details on vessel selection criteria were not immediately available.

On Thursday (March 5), the Lloyd’s Market Association (LMA) in a response to Lloyd’s List said that it met US government representatives and welcomed the DFCs intention to support movement of non-sanctioned vessels and their commodities through the Strait of Hormuz. LMA represents the interests of 59 Lloyd’s managing agents and members’ agents.

The LMA also noted that “it is important to note that the vast majority of these vessels are insured in the London market and for those vessels, insurance currently remains in place”, the Lloyd’s List article said.

Early last week, the US offered political risk insurance and naval support to oil and gas tankers transiting the Strait of Hormuz in a bid to check rising crude oil prices.