The product provides protection against economic losses caused by navigation system disruption, including port-entry bans, vessel detention and delayed departures.
The Indian lender's programme reportedly carries aggregate cover of about ₹7.5bn (US$78.4m), though sources say the loss limit applying to this incident is closer to ₹3bn.
Behind the softer pricing lies a market propped up by excess capacity, with the report warning that a retreat by just a handful of dominant reinsurers could trigger a rapid reversal.
