Iran trading – P&I cover 22 February 2016 No.15-019 Download PDF (161KB) Introduction Members are referred to our previous Circular No.15-016 dated 20 January, 2016 concerning developments with regard to Iran sanctions.  This Circular is intended to assist Members when deciding whether to trade to/from Iran by explaining what P&I cover is available as well as identifying any possible shortfalls in cover.  Some of the matters detailed below may also apply when Members’ ships trade to/from other countries which are subject to US sanctions. In recent years sanctions have been imposed on Iran, primarily by the UN, US and the EU, including in broad terms prohibitions on: US persons, including US financial institutions, from doing business in or relating to Iran; dealings with designated entities and individuals; and Iranian related trade, prohibiting the purchase/sale and/or transport of certain Iranian cargoes (primarily crude oil, petroleum or petrochemical products or gas) or the provision of insurance (including P&I insurance) in respect of the carriage of those cargoes. In July 2015 the Joint Comprehensive Plan of Action (JCPOA) was agreed between the P5+1 countries and Iran.  On 16 January 2016 (Implementation Day) the majority of the US and EU trade sanctions noted in (c) above were lifted.  However, the sanctions noted in (a) and (b) above remain in place.  It is also important to note that sanctions remain in place in respect of a number of other countries (e.g. Cuba, Russia/Crimea, North Korea, Sudan and Syria). The interaction between sanctions and IG Club P&I cover The Rules of all of the IG Clubs: contain a cesser or non-insurance rule, under which the Member has no P&I cover in respect of activities or liabilities which expose the Club to sanctions or to the risk of sanctions; and prohibit or limit (reduce) a Member’s right of recovery from its club if, because of the application of sanctions, there is a shortfal