Indian shipping firms will find it difficult to obtain replacement insurance coverage to continue importing Iranian crude oil after new European Union sanctions come into effect, industry sources said.
 
 State-run Shipping Corporations of India (SCI), the largest tanker owner in India, will lose its European Union (EU) insurance coverage for its oil tankers operating in Iran from July 1, when European insurers will be prohibited from indemnifying ships carrying Iranian oil.
 
 Indian maritime firms are likely to be the most affected in Asia by the sanctions as the other two biggest buyers China and Japan do not rely on European insurers but are covered by domestic providers. India, China and Japan are Iran's three biggest crude oil buyers.
 
 Referring to the groups of customer-owned maritime protection and indemnity insurance groups, Sunil Thapar, Director at Shipping Corporations of India said that they are covered by P&I clubs in the EU.