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Indian insurers to ensure availability of terrorism cover
Indian insurers have decided to ensure continued availability of terrorism cover insurance to Indian public, trade and industry, and initially capped the maximum amount of loss payable at one location at Rs 200 crore.
Indian insurers have decided to ensure continued availability of terrorism cover insurance to Indian public, trade and industry, and initially capped the maximum amount of loss payable at one location at Rs 200 crore.
"For loss liability, limits in excess of Rs 200 crore, the insurer can obtain rates from reinsurers and handle its reinsurance," Tariff Advisory Committe (General Insurance) chairman N Rangachary said in a release in Mumbai on Wednesday.
"The premium rates applicable from April have been fixed by keeping in view the risk exposure on account of terrorism cover and the reinsurance available worldwide," he said.
"Terrorism cover would only be given in conjuction with riots, strike, malicious damage (RSMD) cover. No mid-term cover shall be given for RSMD and terrorism," Rangachary said.
"The rate for terrorism (to be charged separately on material damage and loss of profits sum insured) would be 0.05 per cent and 0.03 per cent for industrial and non-industrial risk respectively," he said.
"The rates for terrorism risk would be effective from April one. A ten per cent surcharge on account of terrorism, was applicable with effect from October last. All such insurances would be cancelled on pro-rata basis as on March end, 2002 and replaced for the un-expired period with revised rates," he added.
The steps of Indian insurers follows the decision of global reinsurers not to grant reinsurance support for terrorism risk in property insurance. Bureau Report
"The premium rates applicable from April have been fixed by keeping in view the risk exposure on account of terrorism cover and the reinsurance available worldwide," he said.
"Terrorism cover would only be given in conjuction with riots, strike, malicious damage (RSMD) cover. No mid-term cover shall be given for RSMD and terrorism," Rangachary said.
"The rate for terrorism (to be charged separately on material damage and loss of profits sum insured) would be 0.05 per cent and 0.03 per cent for industrial and non-industrial risk respectively," he said.
"The rates for terrorism risk would be effective from April one. A ten per cent surcharge on account of terrorism, was applicable with effect from October last. All such insurances would be cancelled on pro-rata basis as on March end, 2002 and replaced for the un-expired period with revised rates," he added.
The steps of Indian insurers follows the decision of global reinsurers not to grant reinsurance support for terrorism risk in property insurance. Bureau Report