GIC mulls hiking terror cover, cutting premium

Currently the Terrorism Pool a capacity of Rs 300 crore, in terms of per client cover. This amount will now be increased, and GIC would take a final decision soon on the new capacity.

Apart from the Terrorism Pool, GIC, together with other general insurance companies, is also planning to set up an Earthquake pool.

‘‘The companies have the option to use the international market selectively and do not have to depend on them anymore for capacity or support. This has helped in rationalisation of rates and giving the the best of terms to the consumer,’’ explained Ghosh.

Terror risk apart, the corporation has developed a capacity to cover a risk up to Rs 1,500 crore probable maximum loss (PML) per client for the benefit of the Indian market. In earlier years, Indian risks needed huge support from international markets and were dependent on rates quoted by them.

The corporation, Ghosh said, would like to be seen as the preferred reinsurer in the Afro-Asian markets.