A rise in political uncertainty globally has led to Indian companies going for political violence insurance covers. These policies are taken by firms that have investments in foreign markets and exposure to such risks.
Ketan Kale, practice leader-credit, political & security risk, JLT Independent Insurers Brokers, said Indian firms are gradually coming forward to insure their assets globally, particularly in regions such as West Asia and Africa. While plans for covers in unstable markets are not denied,
premium are moderately much higher — by as much as 100-600 percent. Sanjay Datta, chief underwriting & claims, ICICI Lombard GIC Ltd, says there has been a good demand for these plans. “Capacity is not a problem since we have a terrorism pool in place. This pool size may increase to Rs 2,000 crore from Rs 1,500 crore.”
The Indian Market Terrorism Risk Insurance Pool is expected to see an uptick in ability with a rise in global terror incidents. The pool was created following an idea by non-life insurance firms in India in April 2002, after terrorism cover was withdrawn by international re insurers as a result.
of the 9/11 attack. The pool has finished 13 years of successful function. All non-life insurance companies of the country and General Insurance Corporation of India (GIC Re) are members of the pool.