Mumbai, March 15
ICICI Lombard General Insurance has offered a weather insurance cover to Gujarat Heavy Chemicals Ltd (GHCL) against the loss of salt output due to unseasonal rainfall at its salt production fields in Nagapattinam, Tamil Nadu.
According to the company, this is the first insurance cover given by any insurer in the country to a corporate against expected loss due to adverse weather. As per the terms of the policy, ICICI Lombard will pay GHCL a compensation of Rs 6 lakh, Rs 10 lakh and Rs 25 lakh per non-production day (NPD). The compensation depends on the number of rainy days and the severity by further classifying the rainy days into three categories based on rainfall received. The maximum sum insured as per the deal is Rs 1.5 crore. Mr Sandeep Bakshi, MD, ICICI Lombard General Insurance said the insurance solution would help GHCL minimise its production losses due to uncontrollable weather conditions. ICICI Lombard will collect data from the Nagapattinam weather station (World Meteorological Organisation) on a daily basis for claims settlement.