After the Mumbai attacks, terror insurance on life and property is likely to take off in a big way and the insurance regulator expects the common pool of premium for general insurance to go up from the existing Rs 750 crore.
“Terror insurance products are bound to be upgraded and the rate of premium might change depending upon the evolution of new products that the industry may come up with,” said J Hari Narayan, chairman, Insurance Regulatory and Development Authority (IRDA).
As the consumer awareness for the product is growing, the industry feels that they will come out to fulfill the specific needs of the customers. “Though the terror insurance products are available now, we will reconsider and configure the products to meet the consumer demand,” said Sandeep Bakshi, MD and CEO, ICICI Lombard General Insurance.
In case of the general insurance that covers the property, terror insurance comes as a separate cover while there is no separate cover for life insurance.
“In case of life insurance, one needs to take the accidental rider that covers death due to terrorism that comes at a nominal price,” said P Nandgopal, CEO, Reliance Life Insurance.