ANNUAL REPORT 2007-08
PREMIUM RATES FOR TERRORISM RISK INSURANCE (W.E.F. APRIL 1, 2008)
Total Sum Insured per Location (Material Damage + Loss of Profit)
Upto Rs. 500 Crs.
Industrial Risk Non-Industrial Risk Residential Risk
Over Rs. 500 crs. and upto Rs. 2000 crs.
First Rs. 500 crs. as per (1) above PLUS on balance Sum Insured as under : Industrial Risk
Over Rs. 2000 Crs.
Non-Industrial Risk First Rs. 2000 crs. as per (2) above PLUS on balance Sum Insured as under : Industrial Risk Non-Industrial Risk
Rates to be charged on full sum insured (MD+LOP)
Revised Rate* (per mille)
0.22 0.13 0.08
Total Sum Insured ( MD + LOP )
Overall ( MD + LOP ) liability cap per location/ compound
Not exceeding Rs. 750 crore
Total Sum Insured
Exceeding Rs. 750 crore
Rs. 750 crore
COVER LIMIT FOR TERRORISM RISK INSURANCE
(W.E.F. APRIL 1, 2008)
Re-insurance Advisory Committee
As per Section 101A of the Insurance Act, 1938 every insurer shall reinsure with the Indian re-insurer such percentage of the sum insured on each general insurance policy as may be specified by the Authority, which are also known as obligatory cessions or statutory cessions, with the previous approval of the Central Government, after consultation with the Re- insurance Advisory Committee.
For this purpose the Authority may by notification a) specify the percentages of the sum insured on each policy to be reinsured with the Indian re-insurer and different percentages may be specified for different classes of insurance provided that no percentage so specified shall exceed 30 per cent of the sum insured on such policy; and b) also specify the proportion in which said percentage shall be allocated among the Indian re-insurer.