New India earns Rs 42 cr premium from satellite launches cover

Company has posted more than three times rise in its net profit to Rs 644 crore in the first half of the current financial year

Country's largest general insurer New India Assurance has earned around Rs 42 crore in premium so far this fiscal by providing cover to satellite launches by the Indian Space Research Organisation from the Kourou French Guiana space centre, according to company sources.

Isro, which on Tuesday kicked off the Mars orbiter mission from Sriharikota without any cover, had conducted two launches namely GSAT-7 and INSAT-3D by Arianne-5 from the French space centre in July and August this year.

"The company has earned a premium of around Rs 42 crore by covering these two launches," sources told PTI.

They, however, said the domestic space agency has not taken any cover for the Mars mission. "Isro has not taken any cover for the Mars orbiter mission."

As per the sources, the space agency has taken the decision not to insure the Mars mission due to high cost involved securing the cover.

"Isro doesn't take satellite cover for its domestic launches. But it takes cover for launches from foreign shores," they said.

Industry players said that getting attractive premium for a satellite launch depends on the track record of the space agency.

"While a space agency with highly successful track record will pay low premium, low success rate will force the agency to pay more," an official from a public sector general insurance firm said.

New India Assurance has posted more than three times rise in its net profit to Rs 644 crore in the first half of the current financial year. Its gross written premium rose 12.5% to Rs 6,906 crore during this period.