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New Delhi: A parliamentary panel is set to suggest policy measures for the insurance sector to equip it to deal with the impact of natural calamities on large infrastructure projects, people familiar with the matter told ET...
The standing committee on finance-headed by former minister of state for finance Jayant Sinha has considered issues around reinsurance following complications in insurance claims related to the Teesta Stage III Hydropower project in Sikkim that was washed away by a glacial lake outburst..
The power project, which was completely washed down by a glacial lake outburst flood, was insured for 11,400 crore by a consortium of insurers, including a public sector entity, but reinsurers capped the payout at 500 crore..
"Considering a coverage of 50% through parametric insurance solutions, we have a potential of above 10,000 crore of premium which will ensure 10 times coverage," he said.. Parametric insurance is essentially a type of insurance that provides insurance against a specific occurrence in which payout is linked to the magnitude of the event, as opposed to the magnitude of the losses in a traditional indemnity policy...
