GIC, PSUs to underwrite terrorism risk

Chennai: With the continuing uncertainty about finding reinsurers to share the terrorism risks in the global reinsurance market, the General Insurance Corporation of India (GIC) and the four government-owned non-life insurers are planning to underwrite terrorism risk.

In his last interview to the press before his retirement, New India Assurance CMD K N Bhandari said: We are planning to create a facility to the tune of $50million to continue offering terrorism risk cover in the fire-insurance policy. While the final modalities are yet to be worked out, it is expected that GIC will be the reinsurer, while the four PSU insurers will manage the operations for the entire domestic general insurance industry.

Bhandari said the internal reforms proposed by the General Insurers (Public Sector) Association will be implemented soon. The proposals evolved out of consensus and they are not my own ideas. The new transfer policy and check-off systems for the unions will be implemented first.

About the business performance of the four companies, he said, All the companies have registered growth compared to the previous year. Looking back at his 39-year general insurance career, he said: I am a satisfied person. An expert in reinsurance, Bhandari is giving final touches to his book on the subject.