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Insurance firms deny Chevron's $57 million claim for Iran oil seizure

3 insurance provider have actually declined Chevron's claim over the seizure last year of an oil freight by Iran, according to a problem filed on Tuesday in a U.S. court in California.

The Chevron-chartered tanker Advantage Sugary food was boarded by Iranian armed force in the Gulf of Oman in April 2023 and its crude oil freight seized and later transferred to an Iranian vessel.

Zurich American Insurance Coverage, Liberty Mutual Insurance Coverage and Excellent American Insurance coverage asked a U.S. District Court in San Francisco to maintain their rejection of Chevron's $57 million claim that includes interest on the loss.

The oil seizure was not covered under either Chevron's. marine cargo or war dangers policies, the trio stated in their. complaint.

Chevron did not immediately respond to an ask for remark.

The seizure of the petroleum and its later expropriation by. Iran do not constitute 'aggressive operations,' the companies stated. of their rejection of war risks coverage.

The cargo also was not covered under marine cargo policy. since that policy did not cover a seizure or confiscation. whether in time of peace or war and whether lawful or. otherwise, the problem stated.

Chevron chartered the Advantage Sweet to transfer crude oil. to Houston from the Neutral Zone location shared by Saudi Arabia and. Kuwait, the grievance said. Chevron has oil production. operations in the zone.

Iranian Navy task forces boarded the Benefit Sweet while. the vessel was in international waters in the Gulf of Oman on or. about April 27, 2023 and seized control of the vessel and its. cargo of petroleum, according to the grievance.

(source: Reuters)