Insurance for non-agri domain from ICICI Lombard

Chennai, Mar 5 (UNI) ICICI Lombard General Insurance has introduced, what it claims, for the first time in India an unique insurance scheme to cover the 'non-agriculture domain.' This unique insurance cover was extended to GHCL for the expected loss of salt production due to unseasonal rainfall at Nagapattinam salt production fields in Tamil Nadu, ICICI sources here today said.

As per policy terms, the salt production company would be paid an insured compensation of Rs six lakh, Rs ten lakh and Rs 25 lakh per non-production day depending on the frequency and severity of interruption, which was determined by further classifying the rainy days into three categories depending on the quantum of rainfall received. The maximum sum assured was Rs 1.5 crore.

This was the first instance where a corporate had protected itself against the adversities of weather.

Depending upon the success of this scheme, similar cover may be extended to agri-input, plantation, food processing, sugar and other agri-based industries.

Significantly, ICICI Lombard General Insurance is the first insurance company in India to get the approval from the IRDA to launch weather-linked insurance products in the country, the sources claimed.

UNI