The Indian terrorism insurance pool expected to pay property losses
The Indian terrorism insurance pool is expected to pay losses for property damage and business interruption claims on the Mumbai luxury hotels, the Taj Mahal and Oberoi, badly damaged by terrorist attacks or security services’ actions against the terrorists in November. The pool, set up in 2001 by the country’s general insurance companies, is managed by the state owned General Insurance Corp of India (GIC), which reinsures it on the international market.
Twelve public and private sector insurance companies provide terrorism insurance cover as an extension to the standard fire insurance policy. No estimates of likely claims were available in early December when we went to press, but reports from Indian insurance publications suggest losses are likely to run into hundreds of millions of dollars.