Government launches Parametric & Hydro Insurance for disaster shield
ECONOMY & POLICY

Government launches Parametric & Hydro Insurance for disaster shield

GIC chairman Ramaswamy Narayanan announced that the government is actively developing parametric and hydroelectric insurance pools to enhance disaster protection. He stated that discussions are underway with regulators and insurers regarding these products.

According to Ramaswamy, the parametric cover will compensate based on predefined disaster triggers like earthquakes or storms. Meanwhile, the hydroelectric pool aims to safeguard power projects from losses caused by natural catastrophes. He referenced the successful post-2004 terrorism insurance pool as a model for these initiatives, emphasising their coverage against natural disasters such as floods and wind events.

Ramaswamy mentioned that the government intends to prioritise these schemes post-election. He conveyed, "The government is keen on acquiring this insurance cover for the entire country."

He further explained, "The regulator and stakeholders, including insurers and reinsurers, are actively participating in the process. The final product's name and structure will depend on its development."

Regarding the parametric cover, Ramaswamy clarified that discussions are ongoing about whether it will be procured at the state or district level. He noted the need to finalise finer details.

Insurers are exploring models from other regions that have been successfully implemented. Ramaswamy acknowledged the need for customisation, stating, "While certain models have shown promise elsewhere, our country's unique characteristics necessitate tailoring solutions to suit our needs."

He mentioned the insurance regulator's introduction of Bima Vistaar, a product offering property coverage up to Rs 0.2 million. Ramaswamy highlighted Nagaland's purchase of a parametric insurance policy in 2020, which provided cash payouts based on satellite observations and rain gauges to mitigate losses from excess rainfall.

Ramaswamy recounted the losses incurred during the Sikkim floods last year, particularly impacting hydropower plants. Although insurers settled a Rs 5 billion claim from Sikkim Urja Nigam, the total cover amounted to Rs 114 billion. He noted a cap of Rs 5 billion for Acts of God peril in the insurance cover, leading to the aforementioned settlement.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

GIC chairman Ramaswamy Narayanan announced that the government is actively developing parametric and hydroelectric insurance pools to enhance disaster protection. He stated that discussions are underway with regulators and insurers regarding these products. According to Ramaswamy, the parametric cover will compensate based on predefined disaster triggers like earthquakes or storms. Meanwhile, the hydroelectric pool aims to safeguard power projects from losses caused by natural catastrophes. He referenced the successful post-2004 terrorism insurance pool as a model for these initiatives, emphasising their coverage against natural disasters such as floods and wind events. Ramaswamy mentioned that the government intends to prioritise these schemes post-election. He conveyed, The government is keen on acquiring this insurance cover for the entire country. He further explained, The regulator and stakeholders, including insurers and reinsurers, are actively participating in the process. The final product's name and structure will depend on its development. Regarding the parametric cover, Ramaswamy clarified that discussions are ongoing about whether it will be procured at the state or district level. He noted the need to finalise finer details. Insurers are exploring models from other regions that have been successfully implemented. Ramaswamy acknowledged the need for customisation, stating, While certain models have shown promise elsewhere, our country's unique characteristics necessitate tailoring solutions to suit our needs. He mentioned the insurance regulator's introduction of Bima Vistaar, a product offering property coverage up to Rs 0.2 million. Ramaswamy highlighted Nagaland's purchase of a parametric insurance policy in 2020, which provided cash payouts based on satellite observations and rain gauges to mitigate losses from excess rainfall. Ramaswamy recounted the losses incurred during the Sikkim floods last year, particularly impacting hydropower plants. Although insurers settled a Rs 5 billion claim from Sikkim Urja Nigam, the total cover amounted to Rs 114 billion. He noted a cap of Rs 5 billion for Acts of God peril in the insurance cover, leading to the aforementioned settlement.

Next Story
Infrastructure Transport

Design Flaw Stalls New Four-Lane Bridge Project in Jamshedpur

The construction of a four-lane bridge between Litti Chowk and NH 33 has been delayed due to design concerns. Current work is limited to bush clearing near Mango, as engineers have identified alignment issues with the bridge. They noted that a portion of the design encroaches into the Subarnarekha River, according to Executive Engineer Deepak Sahay. In response, survey teams are working on revised plans. The state government has allocated Rs 440 million for the bridge's construction, with an additional Rs 330 million earmarked for land acquisition. Tata Steel has contributed 20-30 per cent o..

Next Story
Infrastructure Transport

Govt Proposes Plan for Strategic Paddar-Zanskar Road Construction

The Government has prepared a proposal for the construction of the Paddar-Zanskar road, which will establish an additional connection between Jammu and Ladakh. This project aims to enhance tourism, bolster local economies, and facilitate the movement of troops to the China and Pakistan borders in Ladakh. Officials indicated that the Union Ministry of Road, Transport and Highways is expected to undertake the project after conducting a detailed study of its route. The road’s construction was initially announced by Union Home Minister Amit Shah during a public rally in Paddar in September las..

Next Story
Infrastructure Transport

TN Govt Allocates Rs 8.04 Bllion to Boost 746 Rural Roads

MK Stalin, Chief Minister, Tamil Nadu, unveiled a major initiative aimed at constructing and maintaining an extensive network of roads in rural areas. The State government announced that the project, with an estimated cost of Rs 8.04 billion, is designed to enhance connectivity for Tamil Nadu's rural population, thereby narrowing the divide between urban and rural regions. A government release highlighted that the project involves the construction of 746 roads covering a total distance of 1,452.97 kilometre across 37 districts in the state. It added that the initiative is being financed thro..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000