Government initiates parametric & hydroelectric insurance pools for enhanced disaster protection
hydroelectric insurance pools for better disaster protection, and is engaging with regulators and insurers for such products, said GIC chairman Ramaswamy Narayanan.
Will BJP's '400-Plus' dream come true? Stage set for Lok Sabha election results
The parametric cover will pay claims based on predefined disaster triggers, such as earthquakes or storms, while the hydroelectric pool will insure losses to power projects due to natural catastrophes. Drawing on the successful model of the post-2004 terrorism insurance pool, he said that these schemes would cover property against natural disasters like floods and wind events, he said.
The government is likely to focus on these schemes post-election, said Ramaswamy.
«The government is keenly pursuing buying this insurance cover for the country as a whole,» said Ramaswamy. «The regulator is involved, we as insurers and reinsurers are involved. What is that policy going to be called and is it going to be a pool, that depends on what the product finally comes out to be.»
He said that it's currently a parametric cover for the entire country that is being discussed and the finer details like whether the state or the district buys it, is yet to be worked out.
Insurers are trying to get some models that are already implemented in some parts of the world. «If something has already worked well, we can try and use the same but what happens is typically one model doesn't detect everything. We are a very different country in the way so we will find a way to ensure that
