The product aims to limit the impacts on the balance sheet of financial institutions, due to non-payment of EMIs by borrowers, resulting out of listed calamities such as floods, earthquakes, cyclones, etc, the insurer said
HDFC ERGO General Insurance has introduced Business Kisht Suraksha — a unique cover aimed at protecting the balance sheet of MFIs, financial institutions and banks in the event of a catastrophe or natural disaster. It aims to limit the impacts on the balance sheet of financial institutions, due to non-payment of EMIs by borrowers, resulting out of listed calamities such as floods, earthquakes, cyclones, etc, the insurer said.
Business Kisht as a product can be customised as per the needs of an individual MFI or financial institution. The product can also be tailor-made depending on the geographical presence of the borrower, MFI or any financial institution basis the perils/climatic conditions that the location is prone to. Additionally, MFIs or financial institutions also have the option of selecting the number of EMIs that might need insurance coverage concerning the lenders' exposure.
Commenting on the launch, Anurag Rastogi, chief actuary and chief underwriting officer, HDF ERGO General Insurance Company said, "Over the past few years, we have seen a rise in natural calamities such as floods and cyclone, which impact the livelihoods of people residing in these calamity-prone areas. Moreover, such calamities also severely impact the lending businesses in these areas. Business Kisht Suraksha aims to address these concerns by indemnifying against these climatic changes whilst also protecting financial institutions from rising NPAs occurring due to the impact of natural disasters."
HDFC ERGO General Insurance Company is a 51:49 joint venture between Housing Development Finance Corporation Ltd. (HDFC) and ERGO International AG; the primary insurance entity of the Munich Re Group of Germany.
Recently, the Company announced the completion of the merger of HDFC ERGO Health Insurance (formerly known as Apollo Munich Health Insurance) with HDFC ERGO, which came in to effect on 13 November, 2020. This merger marked the second successful merger in India's general insurance sector, following the merger of L&T General Insurance in 2017. With a wide distribution network and a 24x7 support team, the company has been offering seamless customer service and innovative products to its customers.