LOTS AT RISK

New Delhi, Nov. 27: Firms are rushing for terror insurance in the wake of the recent attacks in the country.

“We have got an overwhelming response from corporate houses and even small-time entrepreneurs who are now taking no chances and insuring their property because of the fear of terrorism,’’ said Mukesh Thakkar, development officer, New India Assurance.

In India, PSU general insurers contribute their premiums from terror insurance to a pool managed by the General Insurance Corporation.

Set up four years ago, the corpus is more than Rs 1,000 crore and expected to touch Rs 2,000 crore within a few years.

For the PSU insurers, the terrorism cover is an optional facility given with fire insurance. Private insurers, on the other hand, offer an in-built facility.

“We do not charge extra premium for terror cover but give it as part of our comprehensive insurance cover,’’ said Swaraj Krishnan, CEO of Bajaj Allianz general insurance company.

The premium on terror insurance is 0.22 per cent of sum assured for industrial units and 0.13 per cent for non-industrial entities. Industry, however, feels premiums will drop from the next fiscal because of low claims.

“Reduction in prices and an increase in pool capacity are a reflection of the success of the pool initiated after 9/11. Premium prices will hopefully continue to remain low as claims settled so far from this pool is very small,” said Rahul Aggarwal, CEO, Optima Insurance Brokers.

Oilfield threat

The country’s largest offshore oilfield, Bombay High, is a vulnerable target if terrorists take the sea route as they did in Mumbai.

“It is difficult to provide complete security especially in the high seas. What we have is a vessel tracking system. But it cannot prevent any terror attack,” said a senior ONGC official.