Insurance claims arising out of the Mumbai terror attacks in 2008 are estimated to wipe out about Rs 500 crore (Rs 5 billion) from the corpus set up by general insurers to fund such losses.
"The loss to the Terror Pool from this incident (Mumbai attack) is estimated at Rs 500 crore," Insurance Regulatory and Development Authority (IRDA) said in its annual report 2008-09. This is the biggest estimated loss to the Terror Pool since its inception in 2002 and Rs 50 crore (Rs 500 million) has already been released, the report said. As an after effect, the insurance regulator said, the terrorism premium rates have been increased from April 1, 2009.
During 2008-09, the total premium collected in the Pool was Rs 222.55 crore (Rs 2.22 billion) and claims paid was Rs 50 crore, the report said. In the previous year, the Pool's premium was Rs 153.81 crore (Rs 1.53 billion) with claims paid being Rs 1.05 crore (Rs 10.5 million), IRDA said.
Luxury hotels Taj Mahal Palace and Oberoi Trident were targeted by terrorists on November 26, 2008, in a co-ordinated attack across Mumbai that killed over 200 people and left the hotels damaged and burnt.
The Terror Pool was set up in 2002 and members contribute 100 per cent of terror risk insurance premium to the corpus, which is shared among pool members to settle claims. The Taj Mahal hotel suffered losses of more than Rs 114 crore because of destruction of property in the 26/11 Mumbai terror attack, hotel's general manager (human relations) Vidyadhar Vaidya had said last month.
"This figure was not conclusive as the assessment was still in progress and it can go higher...but the survey made till now had put the losses at Rs 114 crore," he had said.
The damage to the Oberoi Group is to the tune of Rs 40 to 50 crore (Rs 400-500 million), while that to the Trident around Rs 40 to 50 lakh.
GIC and New India insurance have maximum share of 19.61 per cent each in the corpus, followed by United India at 12.86 per cent.
