India’s first monorail in Mumbai has an insurance cover for around Rs 1,200 crore from New India Assurance but it is yet to get a terrorism cover.
The Mumbai Metropolitan Region Development Authority (MMRDA) has taken two separate covers — operational policy from New India Assurance and liability policy from Tata AIG General Insurance.
Sources said that MMRDA is in the process of asking for bids from insurance firms for terrorism cover. New India Assurance, which has also insured Worli Bandra Sea Link, has issued an all industrial operational policy which cover fire and engineering failure. Oriental Insurance has picked up 20 per cent share in the policy which has not been reinsured at all except 5 per cent mandatory reinsurance with GIC Re.
Sources point out that due to competition among the general insurers the cover has been provided at a cheaper cost of below Rs 1 crore. Bandra-Worli Sea Link has taken terror cover. Similarly, Bangalore and Delhi metros have also taken cover against terror attacks. Delhi Metro last year insured Rs 4 lakh per passenger for accidents, terrorism act, fire, etc.