Terrorism insurance premiums likely to fall up to 15% from April 1

The maximum limit of indemnity for insurance of sabotage and terrorism risk is decided by the pool underwriting committee, where the initial capacity was Rs 200 crore per location

Companies taking cover against terrorism risk are likely to see premiums fall up to 15 per cent from April 1, as state-owned reinsurer General Insurance Corporation of India (GIC Re) slashes rates for terrorism risk insurance pool.

 

After the withdrawal of reinsurance capacity for terrorism risk by international reinsurers post the September 11, 2001, terrorist attacks in the US, the Indian market formed a terrorism risk insurance pool on April 1, 2002. It was administered by GIC Re and all non-life insurance companies in the country were part of it.

 

The pool provides insurance support for terrorism risk covered under