State-backed New India Assurance recently announced the launch of protection & indemnity (P&I) cover for the inland and coastal vessels, starting with local routes, with reports citing GIC Re and MS Amlin as its reinsurance partners.
The protection is reportedly the country’s first P&I cover by a domestic insurance company, and the solution has a limit of $5 million per vessel. According to a report on thehindubusinessline.com, MS Amlin, alongside India’s GIC Re, is a reinsurance partner of the new scheme.
The article, citing a person briefed on the matter, claims that MS Amlin will underwrite the risk on a “case-to-case” basis, ranging from 40% to 60%.
The article also notes that while New India Assurance is currently using just MS Amlin and GIC Re as its reinsurance partners for its P&I cover, it could look to work with other global reinsurance firms in the future.
Sanjiv Singh, a Deputy Manager at New India Assurance, said: “With reinsurance support, we can stretch it by another $10 million.”
According to reports, New India Assurance plans to provide cover for coastal ships for a few years before expanding onto ocean-going vessels.
