Power Utilities Queue Up For New Risk Cover

The industrial all risk insurance cover offered by the four subsidiaries of General Insurance Corporation has seen more power utilities opt for the cover.

According to an official with the Tariff Advisory Committee (TAC), two more power producers have decided to go for this policy. They are; the AP Gas Power Corporation's 160-mw power plant and the 30-mw plant of FACOR in Andhra Pradesh.

Following the launch of the all risk policy, it has been the power plants that have queued up for this cover. Already two power producers, GVK Industries and Essar, have opted for the industrial all risk policy.

TAC officials are confident that once the bigger power projects get off the ground, they will also opt for this policy.

Since the launch of the policy in July, the four subsidiaries of GIC, National Insurance Company Ltd, the New India Assurance Company Ltd, the Oriental Insurance Company Ltd and the United India Assurance Company Ltd, are targeting to get around 100 policies by this year end.

We have 75 regional offices around the country and the idea is to get each one of them to procure at least one policy. We expect the interest in this policy to pick up from January onwards for it is at that point of time that corporates begin to renew their policies, said the Tariff Advisory Committee official.

While the first two deals were struck by the Madras United India, both New India Assurance and National Insurance Company are also getting into the act.

Among other companies which have evinced interest in taking this policy include the Konkan Railway Corporation. According to a TAC official, the details of the policy pertaining to Konkan Railway Corporation will be finalised by this month end.

It would be the first time that insurance companies would be proving cover to railway property. Cellular operators in Mumbai are also reportedly keen to opt for this cover. Insurance companies are also targetting small ports that are coming up and the road projects, once they take off.