The ongoing military conflict involving Iran has coincided with attacks on port infrastructure and shipping in the Persian Gulf and Arabian Gulf, resulting in multiple vessels being damaged and the disruption of vessel traffic. Iranian forces have warned against passage through the Strait of Hormuz, leading to an effective halt in transit and heightened risks for maritime operations.
We have received formal notice from our Reinsurers that war risk cover will be withdrawn under the reinsurance contract that we use to protect Insureds and Aurora. This action reflects a broader market response to current developments and applies to most Insurers offering Marine Liability and P&I cover, so similar notices are being issued industry-wide.
Iran and Persian / Arabian Gulf
Following the notice being issued no cover is provided for liabilities, losses, damages, costs or expenses otherwise covered under the Aurora 2025 Terms and Conditions for war risks that occur within the waters specifically mentioned below.
- Iran and Iranian waters including coastal waters up to 12 nautical miles offshore
- Persian/Arabian Gulf and adjacent waters as defined*
*Definition – Persian/Arabian Gulf and adjacent waters, including the Gulf of Oman and waters west of the line from Oman’s territorial limit off Cape al-Ḥadd at 22°42.5’N, 59°54.5’E northeast to the Iran-Pakistan border at 25°10.5’N, 61°37.5’E
The map below visualises the new exclusion zone, with everything to the west of the black line falling within the new exclusion zone which is defined above.
War Cover
The AURORA P&I Policy commencing 1 July 2025 excludes War Risks (Clause 68 of the policy); some policies have Excess P&I War Risks Cover specifically added (Clause 39 of the policy). If excess war cover has been added to the policy this is specifically documented within the relevant Certificate of Insurance.
The AURORA P&I Yacht Policy commencing 1 July 2025 excludes War Risks (Clause 44); some policies have Excess P&I War Risks Cover specifically added (Clause 27). If excess war cover has been added to the policy this is specifically documented within the relevant Certificate of Insurance.
Notice Period
Notice has been provided by e-mail. Cover will be automatically reinstated following the notice period with the new Persian Gulf and Arabian Gulf exclusion area specifically documented.
Prospective Cover
Should you require War cover for this region please contact us.
What if we choose not to buy the cover
The P&I policy remains in place but there would be no cover for war or terrorism events that occur within the Persian Gulf and Arabian Gulf.
In Summary
This is a fluid and rapidly evolving situation, and further updates will follow as the situation develops. The Gulf region is currently subject to heightened hostilities and materially increased risk. Future strategy and premiums for the region will be determined by events in the days and weeks ahead.
