The Indian Terrorism Insurance Pool released the first payment of Rs 25 crore for claims from the terror attacks on the iconic Taj Mahal hotel.
KOKLATA: The Indian Terrorism Insurance Pool on Thursday released the first payment of Rs 25 crore for claims arising out of the terror attacks on the iconic Taj Mahal hotel in Mumbai on November 26.
Yogesh Lohiya, chairman and managing director of GIC Re, the designated administrator for the pool, handed over the cheque to R K Krishna Kumar, vice-chairman of Indian Hotels Co, at Bombay House in Mumbai.
The lead cover for the Taj Mahal Palace and Tower, which is owned by Indian Hotels, is provided by Tata AIG General Insurance. However, in claims due to terrorist activities, irrespective of which company issues the policy, the claim is borne by the pool.
The payment, the first from the pool for the November 26 terror attacks, has been made in less than 24 hours of receiving the claims report from Tata AIG.
On this occasion, Lohiya said, “Further claims of the Mumbai terrorist attacks will also be settled in the shortest possible time. We want to show the global community our ability to provide support in such difficult times.”
Although this is a token payment, GIC has gone pro-active to start the process of making payments. Both the Taj Mahal Hotel and the Oberoi Group’s Trident have suffered significant damages in the attacks.
Industry sources said the final assessment of claims is yet to come, as it would take some time to gauge the extent of damage. Moreover, the Taj Mahal Hotel, being a heritage property, will have to undergo a lot of scrutiny on damages. No one is hazarding any guesses on the extent of damage to these properties, but the claims could run into crore. Both the Taj and the Oberoi Group have a sum insured around Rs 1,000 crore.
The Indian Terrorism Pool has borne claims as little as Rs 16 crore over the last seven years. The present reserves are around Rs 1,200-1,300 crore.
The pool was formed in case of any eventuality like the present one, where insurers could fall back on a domestic pool and not depend wholly on global reinsurance. Moreover, it was difficult for any one company to take on the entire risk related to terror attacks.
g_nandini@dnaindia.net
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