The Tariff Advisory Committee of India is learnt to be considering reduction in premiums for terrorism insurance following profits reported by the Indian terrorism pool. ?The terrorism pool that was set up after the 9/11 attacks on the US has made profits of Rs 300 crore for the 2006-07 and the figure is expected to double next year. The committee is hence actively considering a reduction in insurance premiums,? KC Mishra, director, National Insurance Academy said. He was speaking at a meet on cyber forensics held in Pune on Monday.
Mishra, who is on the advisory group of the Insurance Regulatory and Development Authority (Irda) under which the committee had been formed, said that the success of the Indian model was paving the way for other developing nations to follow suit. The Indian general insurance industry had set up its independent terrorism pool after the 9/11 attacks on the US with the General Insurance Corporation (GIC) managing the pool. In contrast, the developed world had to rely on individual governments to establish a separate terrorism pool to take care of probable contingencies. ?Indian corporates are increasingly looking for terrorism insurance coverage. Companies are realising the need for the terrorism cover in the wake of increased terrorist threats,? he said. ?Following the attack on Akshardham in September 2002 and the subsequent disbursal of claims to victims thereafter, all major temples, gurudwaras, mosques and churches in India have been insured against such threats,? he said. Mishra who is also advising the ITC group said that the company had opted for terrorism insurance for its paper mills located in naxalite-infested areas. He cited the attack by naxalites on Coke and Pepsi in Warangal as a case in point for companies opting for such insurance.
