In a bid to protect the shipping industry during war, an additional war risk cover of Rs 400 crore has been taken by the GIC. Our extra capacity will make the domestic shipping industry, which has international exposure on a day-to- day basis, more comfortable, said a senior official of GIC, adding that the capacity was necessary to support the growing domestic shipping industry.
Indias 102 shipping companies together own a fleet of 669 vessels with a gross tonnage of 6.91 million as on March 2005. The Shipping Corporation of India, the countrys largest carrier, manages 82 ships and the share of Indian flagships in the countrys overseas sea-borne trade has been hovering around 30% during the last few years.
Earlier, the Centre, which was administering the scheme, had granted freedom to ship owners to place their war risk cover directly with the domestic general insurance.
Sailing To Safety
Earlier, though the insurance was provided by the govt, the scheme was administered only by the four public sector general insurers.
The premium collected on this account was credited to the government and the claims, if any, was paid by the Centre. The government was charging a premium of 0.08% per annum on the market value of the ship by way of war-risk (peace-time war risk).