GIC Re, the country’s official re-insurer, is looking at options to provide reinsurance cover to the properties damaged by the recent Maoist attacks. Till now, the Maoist offensives do not fall under any kind of terror cover in the country. However, domestic insurers are considering treating such events as acts of terrorism and extend the existing terror cover.
The issue is likely to come up during the forthcoming meeting of the terrorism pool committee. It is likely to be held in New Delhi during the first week of March.
Talking to FE on the sidelines of an insurance summit, which was held by Asia Insurance Post in Mumbai on Wednesday, Yogesh Lohiya, chairman and managing director of GIC Re, said: ?Basically, the terrorism cover is not applicable for this type of contingencies?. But, keeping in view the increasing number of Maoist attacks, we are planning to discuss the issue during the forthcoming meeting of terrorism pool.? GIC Re will organise the event.
PK Bhagat, deputy general manager, reinsurance-operation group, GIC Re, said the company had paid claims for Alfa terrorist attacks in Assam some six years ago. However, in the recent attack by the Maoists in West Bengal where 24 jawans were killed, would not warrant any claims as no properties have been damaged, said Bhagat.
Talking about the claims to be paid for Taj and Oberai Hotels that were devastated by 26/11 terror attacks, Lohiya said GIC Re is waiting for the final assessment report before paying the balance amount of Rs 335 crore.
The company has already paid a sum of Rs 165 crore for the same. The report is likely to be submitted by the month-end. However, the assessment report on the Hilton portion would be submitted later, said Lohiya.
Meanwhile, the country?s largest state-owned non-life insurer, New India Assurance (NIA), is looking at an overall premium growth of 10% on y-o-y basis during the current fiscal. M Ramadoss, CMD, said the company would earn a total premium income of Rs 6,000 crore within the country and an additional Rs 1200 crore from its international operations in the current fiscal.