The domestic Terrorism Pool had grown steadily with contribution from the insurers in India over the years and today its corpus stands at Rs1,700 crore
Insurance industry does not see the possibility of any hike in premium for terror cover in the aftermath of serial blasts in Mumbai that has claimed 18 lives and left 150 injured.
"We don't foresee any hike in premium rates as there has not been much damage to properties," General Insurance Corporation chairman and managing director Yogesh Lohiya told PTI.
According to Bharti AXA General Insurance vice president (property & engineering) Balaji Cuddapah said, "We do not see much of an impact on the terror premium rates, which is governed by the domestic terror pool."
For property related risks, insurers created a Terrorism Pool following the September 2001 terrorist attack in New York. The domestic Terrorism Pool had grown steadily with contribution from the insurers in India over the years and today its corpus stands at Rs1,700 crore.
Premiums are likely to remain stable as far as fire policy, which includes terror cover, is concerned because the damage to properties is not very high, a senior official of the private general insurance company said. Cuddapah added that the blasts happened in commercial areas where the exposure of Bharti AXA General Insurance was insignificant. The last time the premium rates were revised by the terror pool was in 2009, and industry sources said there has not been many claims to the pool.
According to the norms of the Pool, the aggregate loss payable per location by any one or all insurers has been limited at 750 crore.
According to ICICI Lombard head risk and re-insurance Rajiv Kumaraswamy, "whether the rates would harden is difficult to state at this stage and it is a decision which the underwriting committee of the pool would need to take, which would need IRDA approval."
The utility of Terrorism Pool was proven in November 2008 when two hotels in Mumbai among other targets suffered from a terrorist attack. The Pool paid a loss of around Rs400 crore to the affected parties.
The maximum compensation under this policy would be Rs12,000 per acre
Paddy growers in Kurukshetra of Haryana could get their crop insured against the vagaries of weather, with Agriculture Insurance Company of India Ltd (AIC) deciding to provide the insurance coverage during sowing and maturity period of the crop.
Babain block of Kurukshetra district has now become the fourth block in the state where weather-based crop insurance coverage would be provided to paddy growers.
"Haryana government has given its approval for implementing weather-based crop insurance scheme in Babain block of Kurukshetra district for paddy crop, while we will be the implementing agency for the same," AIC regional head Rajesh D said.
Under this scheme, insurance protection would be provided for both deficit and excess rainfall. The maximum compensation under this policy would be Rs12,000 per acre. Claims under this scheme would be based on weather data recorded at reference weather station installed in these blocks, he said.
Out of total premium of Rs1,200, farmers will have to pay only Rs300 per acre and balance amount will be borne by the Haryana government and the Centre on 50:50 basis, he said. Haryana is already providing weather-based insurance cover to paddy growers in Panipat, Tohana and Ambala.
Paddy crop is a major Kharif crop in Haryana with over 12 lakh hectares of area under cultivation and 55 lakh tonne of output. It is compulsory for paddy growers, who take loans from banks, to get insurance coverage for their crop.
Notably, wheat growers in the same block got claims to the tune of Rs4.54 crore for their crop damaged at 18,108 acres of land because of high temperature during maturity of crop in last Rabi season. The claims were given to over 3,000 affected wheat growers.
Deutsche Mutual Fund new issue closes on 27 July 2011
Deutsche Mutual Fund has launched DWS Fixed Term Fund-Series 87 (DFTF-87), a close-ended income scheme.
The investment objective of the scheme is to generate income by investing in debt and money market instruments maturing on or before the date of the maturity of the scheme. The tenure of the scheme is 370 days.
The new issue closes on 27 July 2011. The minimum investment amount is Rs5,000.
CRISIL Short Term Bond Index is the benchmark index. Kumaresh Ramkrishnan is the fund manager.