By Venkatachari Jagannathan
Chennai, Feb 19 (IANS) The insurance pool to cover imports of fertiliser, oil has earned a premium of about Rs 15-20 crore till date, said a senior official of General Insurance Corporation (GIC Re).
Reinsurance cover for products imported from Russia, Belarus were the casualty following the Russia-Ukraine war that began nearly a year ago.
In order to provide the insurance cover, the Indian non-life insurance industry decided to create a Rs 500 crore ‘Fertiliser Pool’ last June.
Soon after the Russian-Ukraine war started, European reinsurers declined reinsurance support to imports of fertiliser from Russia and Belarus.
At that time, India was importing fertiliser from Russia. Soon after India started importing huge quantities of Russian oil and the insurance cover was provided from the pool.
“The total premium earned for covering the consignments — fertiliser and oil — from Russia, Belarus will be about Rs 15-20 crore and there is no claim,” a senior official of GIC Re told IANS preferring anonymity.
It is learnt, 75 per cent of the pool capacity is contributed by GIC Re (51 per cent) and the four government owned general insurance companies (24 per cent) and the balance by several private insurers. The pool is managed by GIC Re.
The premium collected to insure the fertiliser imports by the primary insurers will be ceded to the pool after deducting some administrative expenses. The claims, if any, are paid out of the pool.
This is the third insurance pool in India after the terrorism and nuclear insurance pools.
(Venkatachari Jagannathan can be reached at v.jagannathan@ians.in)
–IANS
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