Terror insurance pool set to expand

Terror insurance pool set to expand

New Delhi: In the aftermath of the Mumbai terror strikes, insurers are set to expand the terror insurance pool, set up nine years ago, from the current level of Rs750 crore, and improved products are bound to hit the market, even as there is no claim on this account.

“Right now the terror insurance pool stands at Rs750 crore. If more members of the insurance community feel the need to expand the pool, it will grow. But it will depend on how much is purchased by the companies," IRDA Chairman J Hari Narayan said.

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/Content/Videos/2008-12-04/0312_IRDA_Premium_Pkg_MINT_TV.flvd9a2fde6-c144-11dd-8a99-000b5dabf613.flvRefusing to state how much the increase would be, he said so far there have hardly been any claims against terror insurance.

On the premium, the IRDA chairman said, “Terror insurance products are bound to be upgraded and the rate of premium might change depending upon the evolution of new products that the industry may come up with."

The companies, he said, are coming out with products that have terror cover.

The nine-year-old terrorism pool, with 12 public and private sector insurance companies contributing, provide terrorism insurance cover in standard fire insurance policy and the premium collected by them is pooled.

These companies withdraw amounts in the case of claims against terror attacks.

The Taj and Oberoi Hotels’ losses due to the recent terror attacks may run into several hundred crores, even though there is no official word on this.

Video by Taneesha Kulshrestha