Search for News, Stock Quotes & NAV's You are here: ET Home › Industry › Banking/Finance › Finance IRDA may raise terror risk pool, claims cap to boost Indian cos Post a Comment By ET Bureau | 9 Jan, 2015, 01.32PM IST MUMBAI: The insurance regulator has indicated that it may raise the terrorism insurance settlement pool and raise the cap on claims to prevent companies going overseas seeking such insurance and to keep pace with the rising value of Indian businesses. "It is now proposed to revise the pool's capacity per location, the rates, deductibles, terms and coverage," the Insurance Regulatory and Development Authority ( IRDA) said in its annual report for FY14 released on Thursday. Unlike other claims such as floods, or fire, claims arising from any terrorist inflicted damage are paid out of a pool of funds that insurers operate which is about Rs 1,500 crore. Premium rates for terrorism cover were raised in April 2009 after heavy losses from the 26/11 Mumbai terrorist attack on Taj Hotels and the Oberoi in Mumbai. With the size of the Indian economy growing and businesses getting bigger, the regulator may raise the cap. Indian companies seeking terrorism cover above Rs 1500 crore are forced to tap overseas insurers. If the pool capacity is increased, it may prompt them to seek terrorism cover from the domestic players. How ever, companies such as Indian Oil, Reliance Industries will continue to seek insurance for terror risk from overseas market since the size of their cover is substantial. Premium rates for terrorism cover were raised in April 2009 after heavy losses from the 26/11 Mumbai terrorist attack on Taj Hotels and the Oberoi in Mumbai. ET SPECIAL: Save precious time tracking your investments It is just coincidental that the report comes a day after attacks in Paris which killed a dozen. But even in India, terrorist attacks continue with incidents such as the one in Bengaluru in December. Indeed, the Coast Guard recently confronted a boat carrying suspected Pakistani terrorists who might have targeted Indian businesses. The Terrorism Risk Insurance Pool was formed by general insurance companies in April 2002 after terrorism cover was withdrawn by international reinsurers post the 911 attack in New York. The pool's premium income, administered by staterun GIC, has decreased from Rs 482.5 crore in 201213 to Rs 471.1 crore in 201314, down 2.3%. The claims paid by the pool during 201314 stood at Rs 2.22 crore. Live Market News Portfolio Mobile Live TV Newsletter Commodities Speed QnA Blogs Alerts Other Times Group news sites Living and entertainment Hot on the Web Services Times of India | इकनॉ मक टाइ स Timescity | iDiva | Bollywood Zoom | Healthmeup | Luxpresso Technology | Guylife | Online Songs | Travel Guides | Hotel Reviews | Go Cricket Daily Horoscope | Weather in Delhi Mumbai Map | Horoscope Hotels in Delhi | Cricket Scorecard Book print ads | Online shopping | Free SMS | Website design | CRM | Tenders Matrimonial | Ringtones | Astrology | Jobs | Property | Buy car | Bikes in India Used Cars | Online Deals | Restaurants in Delhi | Movie Show Timings in Mumbai Remit to India | Buy Mobiles | Listen Songs ઈકોનોિમક ટાઈ渀સ | Mumbai Mirror Times Now | Indiatimes नवभारत टाइ स | महारा टाइ स 㔷㤸ಜಯ ಕ㌹晐ಾ㍂䩑ಟಕ | Lifehacker Gizmodo | Eisamay | IGN India NavGujarat Samay Networking itimes | Dating & Chat | Email MensXP.com About us / Advertise with us / Terms of Use and Grievance Redressal Policy / Privacy Policy / Feedback / Sitemap / Code of Ethics Copyright © 2015 Times Internet Limited. All rights reserved.