Page 42 - Insurance Times October 2023

who issues satellite policies. India's space programme dates underwriters started to come to India to meet New India
back to the mid-1970s and the purpose was to develop Officials. In the beginning it was a reinsurance-led
indigenous rocket technology in the face of the sanctions development and the rates for India were very high. They
imposed by Western nations consequent to its 1974 nuclear were reduced as New India gained expertise. Of the
test in Pokhran. Its experimental satellites started with the subsequent ISRO programmes New India has insured GSAT-
launch of Aryabhata, built by Indian Space Research 10, INSAT-3D and GSAT-7. It has also covered GSAT-16
Organization (ISRO) in 1975, Bhaskara I and Bhaskara II in launched in December 2014 and the pre-launch expenses
1979 and 1981, followed by the Rohini series. In 1981 came of GSAT-15 scheduled to be launched in October 2015.
Ariane Passenger PayLoad Experiment (APPLE) followed by
INSAT-1A, the first operational satellite. The Indian space The satellite insurance programme has been a signature
programme was taking off. achievement for New India and a profitable business too
since then. When it comes to foreign joint ventures - it's the
INSAT-1A was launched by a Delta rocket in the US in April foreign space agency which usually has insurance as a clause.
1982 but was abandoned in September when its attitude And that is why ISRO compiled and bought insurance. But
control propellant was exhausted. It had been insured since Chandrayaan-2 now has set the agency rethinking on how
launch facilities abroad insist on insurance as part of their to curtail losses in its pursuit of scientific exploration.
terms and conditions. New India paid the claim. It had, as
always, protected itself fully with reinsurance. The insurance of INSAT-1A required the then Department
of Space Secretary Mr. T.N. Seshan and New India CMD Mr.
Having experienced the comfort of insurance, the A. C. Mukherji to travel to London to conclude reinsurance.
Government and ISRO started considering coverage for The team needed the support of underwriters in both
INSAT-1B. For the New India team in Bengaluru which had London and the US market to cover the Satellite programme.
been pursuing the business, there was a breakthrough finally! For later programmes, New India re-insured with the
Securing India's Space Programme: The New India team led underwriters in London and Munich and earned huge
by Chairman cum Managing Director Mr. A. C. Mukherji premium in that process.
during the handing over of the claim cheque of US$12 million
for INSAT-1A to Chairman, Indian Space Research Marsh is already involved in insuring the satellites being
Organization, Professor Mr. Satish Dhawan in 1983. launched from US & India during 2023. 'OneWeb' confirmed
Manager, Reinsurance, Mr. B.C.K. Menon and Bengaluru to sign an agreement for an aggregate insured value of more
Regional Manager Mr. K. K. Menon made their visit and than $1 billion through Marsh in September 2021 and now
revisit ISRO, the prospect. So did Bengaluru Regional that relationship will cover the remaining satellite launches
Engineer Mr. Matthew Varghese. ISRO decided to insure, for 'OneWeb' to complete its Gen1 constellation.
but only those launches from centers abroad. Later when
INSAT-1C failed and INSAT-2D died in orbit, insurance was
available as the safety net. 8. While Summing Up:
Now, after the successful landing on moon with very scanty
"The reinsurance was difficult to place at first because we expenses by ISRO (in comparison to similar U.S. & European
were new," says Mr. O.P. Rana, who had returned from New launching expenses), specialist underwriters from abroad
India's Australia operations in the late sixties and was in the will fly down to India to underwrite ISRO's satellite
Reinsurance Department at Head Office. To set things rolling programmes in a very competitive & comprehensive
the then Secretary, Department of Space, Mr. T. N. Seshan premium rate, no doubt, although all of the Chandrayaan
and Mr. A. C. Mukherji, then New India's Chairman cum series satellites are made in India and to be insured in India
Managing Director, travelled to London to conclude the with global reinsurers' expertise, support & advice.
reinsurance programme. They met many underwriters and
the business was placed in two phases in London and in the Reference:
US market. Different contemporary Global & Indian Regulations,
discussions & information as collected & collated from
For later programmes New India needed to go only to the various text materials available on-line & in hard copies /
main centers of London and Munich and then the media reports.

40 October 2023 The Insurance Times