Mr. Rae added that local refineries have also been asked to talk to reinsurance companies in Europe to provide them with the reinsurance cover.

WSJ: India Mulls Reinsurance Fund to Aid Iranian Crude Imports

"What would be the size of the fund, how much are we required to contribute and whether it is enough to cover the reinsurance risk, this is something the insurance companies have to work out, " he said.

WSJ: India Mulls Reinsurance Fund to Aid Iranian Crude Imports

Reinsurers have cut the proportion of risk they are prepared to cover and raised their deductibles ie, the threshold at which reinsurance kicks in.

ECONOMIST: Reinsurers are taking on less risk, at a higher price