The Hindu Business Line : Insurers seek nod for add-on terror cover

Mumbai, Jan. 11 Corporate houses may now be able to add terror cover to their existing policies in the middle of the year without having to wait for the annual renewal of their covers.

The general insurers have approached the Insurance Regulatory and Development Authority to allow mid-term inclusion of the terrorism add-on cover to the existing policy, said Mr G. Srinivasan, Chairman and Managing Director, United India Insurance Co.

He was speaking on the sidelines of a seminar on ‘Customised Policy Wording’ organised by Unison Insurance Broking Services.

At present, any establishment needs to take a standalone cover if it wants itself to be covered by terror insurance in the middle of the policy term. The general insurance industry also anticipates a hardening in the premium rates, with the increase in the reinsurance rates.

reinsurance capacity

The international reinsurers are facing a decrease in their reinsurance capacity due to a decrease in their investment income, besides the worsening global scenario.

“When contracts come up for renewal in April, there could be a hardening in the rates and the reinsurance costs could increase as the international reinsurers are facing shrinking capacity. This will have an impact on the direct insurance premiums,” said Mr Sandeep Bakshi, CEO and Managing Director, ICICI Lombard General Insurance.