Terror insurance pool crosses Rs 1K cr mark
Policy holders are becoming aware of the terrorism cover and insist that the clause be added while taking fire insurance cover. Benefits of money back policy
By TNN |
MUMBAI: The fear of terror attacks is making people go in for a terror insurance cover. ���The common terrorism pool has over Rs 1,000 crore today and is set to touch the Rs 2,000 crore mark in a few years. This shows that people do anticipate terror attacks and are not willing to take any chances,������ an insurance official said.
Insurance firms say new policy holders are becoming increasingly aware of the terrorism cover and insist that the clause be added while taking fire insurance cover. ���We have got an overwhelming response from corporates 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.
While public sector insurance firms say this cover has added value to their portfolio, some private sector firms claim that they have started giving an inbuilt terrorism cover . ���We do not charge an extra premium for terrorism cover but have been giving it as part of our comprehensive insurance cover,������ said Swaraj Krishnan , CEO of Bajaj Allianz general insurance company.
Insurance firms say new policy holders are becoming increasingly aware of the terrorism cover and insist that the clause be added while taking fire insurance cover. ���We have got an overwhelming response from corporates 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.
While public sector insurance firms say this cover has added value to their portfolio, some private sector firms claim that they have started giving an inbuilt terrorism cover . ���We do not charge an extra premium for terrorism cover but have been giving it as part of our comprehensive insurance cover,������ said Swaraj Krishnan , CEO of Bajaj Allianz general insurance company.
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Under the revised rates which came into effect from June this year, the terror insurance premium for industrial establishments is 0.08% of the value of the sum insured, 0.13% in case of non-industrial units and 0.22% of the sum insured for industrial units.
���The terrorism policy is only an add-on cover which can be taken with the fire insurance policy. Fire insurance covers calamities like earthquakes , floods, fire and riots,������ said Parimal Shah, a fire insurance surveyor.
But insurers say care should be exercised while taking insurance for terrorism cover. ���If a company is giving fire insurance cover for a small premium, the policy holder should check if terrorism cover is added. It cannot be added once the policy has been taken . It should be done at the inception ,������ Thakkar said.
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