The source said that the purchasers should rent oil tanker by themselves to carry crude oil to their country.
Experts say that purchase of Iranian crude oil on FOB base will make the oil price cheaper for Indian refiners.
According to international law, under a FOB deal, the seller should bear all expenses until the consignment is delivered on board (ship, plane or railway) and after that all expenses including transportation fees, insurance and import tariffs should be borne by the purchaser.
India's petrochemical company ' Baharat' announced that it is going to start its crude oil import from Iran within the next few months.
India's insurance officials announced that European Protection and Indemnity Company (P&I) is offering a re-insurance worth 580 million dollars for Iran's oil consignments.
The P&I insure ship owners, renting companies concerning cases like death of crews, accident, sea pollution and other incidents.
India was the second largest Iran's oil purchaser before the West imposed sanctions on Iran as a result of which its ranking dropped to the seventh place.