Mumbai: State-owned reinsurance firm General Insurance Corporation of India (GIC) on Thursday said it will provide a Rs 600 crore terror and weather insurance cover for the Cricket World Cup to international sports broadcaster ESPN.
“We have finalised on providing Rs 600 crore terror and weather insurance cover for the cup to ESPN on Rs 9 crore premium,” GIC chairman and managing director Yogesh Lohia said on the sidelines of the 4th India Rendezvous on Reinsurance.
This is a record cover for any sporting event in the country and is three times more than the Rs 200 crore cover for the Commonwealth Games in Delhi.
The 2011 ICC Cricket World Cup will begin on 19 February and end on 2 April. India will host 27 matches at eight venues -- Bangalore, Chennai, Delhi, Mumbai, Kolkata, Punjab, Gujarat and Nagpur.
The insurance cover will compensate for any broadcasting loss arising from cancellation due to adverse weather conditions and terror attacks.
However, GIC is still working on the modalities of providing insurance coverage to the World Cup event with the BCCI.
With regard to claim ratios, Lohia said in the first half, the incurred claim stood at 70-80%, which is expected to go up during the second half of 2011.
He said floods in Brazil and Australia are likely to hit the margins of the company.
“We are getting reports of losses, however, we not sure if it is the company loss or insured loss. But it may hit the profitability of the company,” he added.
Minister of state for finance Namo Narain Meena said there was exponential growth in premium collections in the general insurance industry to $8 billion in 2010 from $3.5 billion in 2003.
“After managing the Indian terrorism isurance pool and now working for the establishment of the Indian nuclear insurance pool, the time is right to pursue the target of creating an Asian reinsurance hub in India,” he said.
GIC is currently working on details for establishing the Indian nuclear insurance pool that will provide insurance protection from nuclear accidents.