The Maharashtra State Road Development Corporation (MSRDC), which is reeling under a debt of Rs4,500 crore, has now decided to insure its assets worth Rs6,147 crore.
The MSRDC insures its projects from natural disasters or terrorist attacks. This time, however, the agency has decided to protect its offices from theft and burglary as well.
“There have been issues with theft so we thought it made sense to insure office equipment as well,” an MSRDC official said, on condition of anonymity. This equipment includes an aqua guard, air cooler, calculator, microwave oven, fans and water heater. The total value of the office equipment amounts to Rs1.6 crore.
The MSRDC will also insure the 32 flyovers in Mumbai, which are worth Rs1,030 crore and the Mumbai-Pune Expressway, which is worth Rs2,123 crore.
The MSRDC will also insure its fixed assets across the state. It is likely to spend a total premium of around Rs5 crore on these assets.
The MSRDC presently spends around Rs1 crore every year to ensure that the Bandra-Worli sea link has an insurance cover, which includes cover against standard fires and special peril policy for roads, tunnels, bridges, flyovers and other structures on the roads. It also provides cover against acts of terrorism.
Project insurance is a multi-billion dollar business in the world. Insuring an infrastructure project provides a two-fold cover for material damage and third-party liability. The owner can claim insurance in case there is loss of material because of risks such as fire sabotage.