(MENAFN) Three insurance companies, namely Zurich American, Liberty Mutual, and Great American, have reportedly denied a financial claim filed by Chevron regarding Iran's seizure of an oil shipment last year. According to a complaint lodged by the insurance companies in a US court in California, Iranian army forces boarded the tanker, named Advantage Sweet and chartered by Chevron, as it traversed the Gulf of Oman in April of the previous year. The forces confiscated the crude oil shipment, which was subsequently transferred to an Iranian vessel.
In response to Chevron's claim amounting to USD57 million under the terms of the company's marine shipping and war risks insurance policy, the insurance companies have sought the court's affirmation of their decision to reject the claim. They argue that the seizure and confiscation of the crude oil by Iran do not constitute military operations. Furthermore, they maintain that Chevron's insurance policy pertaining to ocean freight does not encompass coverage for such acts of seizure or confiscation.
Chevron, however, has voiced its objection to the denial of insurance coverage. Christine Dubin, a spokeswoman for the company, emphasized that Iran's military seizure of the Advantage Sweet tanker, while it carried Chevron's cargo in international waters, constituted a hostile act clearly covered by their insurance policies. Dubin expressed Chevron's anticipation of proving this assertion in court as the legal dispute unfolds.
The disagreement between Chevron and the insurance companies underscores the complexities and legal intricacies surrounding maritime insurance policies, particularly in cases involving geopolitical risks and hostile actions by foreign entities. As the legal proceedings progress, both Chevron and the insurance companies are poised to present their respective arguments and evidence to the court, seeking resolution and clarity regarding the insurance coverage in question.
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