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Insurance companies paid Rs 262 cr as 26/11 claims

Last Updated: Monday, December 13, 2010 - 20:21

New Delhi: Insurers have paid Rs 262 crore
towards claims arising out of the 26/11 Mumbai terror attacks
and the money came from a corpus set up by general insurers.

"In 2009-10, Rs 212 crore were (paid) towards further
on-account payments made for the losses arising from the
terrorist attack on November 26, 2008 at Mumbai," Insurance
Regulatory and Development Authority (IRDA) said in its annual
report 2009-10.

An amount of Rs 50 crore had already been settled in
fiscal 2008-09.

Insurers expect the total claims to touch Rs 500 crore.

"The loss to the pool (corpus set up by insurers) from
this incident is at present estimated at Rs 500 crore
including the on-account payments made so far," the report
said.

Luxury hotels Taj Mahal Palace and Oberoi Trident were
among the places targeted by terrorists on November 26, 2008,
in a coordinated attack across Mumbai that killed over 200
people and left the hotels damaged and burnt.

The Terror Pool was set up in 2002 and members contribute
100 per cent of terror risk insurance premium to the corpus,
which is shared among pool members to settle claims.

During 2009-10, the total premium ceded to the terrorism
pool was Rs 306 crore and claims paid were Rs 214 crore.

The pool`s premium in the previous year was Rs 223 crore
with claims paid at Rs 50.67 crore.

The pool is protected by an excess of loss reinsurance
programme, and loss in excess of Rs 150 crore are recovered
from the reinsurers.

GIC and New India insurance have maximum share of 19.61
per cent each in the corpus, followed by United India at 12.86
per cent.

PTI

First Published: Monday, December 13, 2010 - 20:21

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