Page 8 - The Insurance Times July 2025

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Claims of Up to $475 Mil-
Tea to Be Covered Under Centre's Weather-Based
lion
Insurance for the First Time
The crash of an Air India Boeing 787-8
In a major step for plantation farmers, the Union Ministry of Agriculture
Dreamliner near Ahmedabad is poised
and Farmers Welfare has included tea under the Restructured Weather
to result in total insurance claims of up
Based Crop Insurance Scheme (RWBCIS), starting from the upcoming kharif
season. States like West Bengal, Assam, and Kerala will benefit from the to $475 million (approximately Rs.
move, which marks the first time plantation crops are receiving weather- 1,500 crore), making it one of the most
based insurance coverage. significant aviation losses in Asia in re-
cent years. Industry insiders estimate
The circular, issued on June 10, emphasized collaboration with state gov- $130-150 million for aircraft damage
ernments, commodity boards, and the Department of Commerce to scien- and passenger liability alone, with the
tifically define term sheets for plantation crops. The ministry urged states final figure rising due to expanded
to complete the tendering process for private insurer participation by June cover and third-party claims.
20.
Weeks before the crash, Air India had
Bijoy Gopal Chakraborty, president of the Confederation of Indian Small Tea increased the insured value of the air-
Growers Associations (CISTA), welcomed the move, calling it a "long- craft from Rs. 750 crore to Rs. 850 crore
awaited" initiative that addresses the vulnerability of small growers to er- following an engine replacement. The
ratic weather. insurance, led by Tata AIG, covers the
airline's fleet, reinsured primarily with
global players like AIG, AXA XL, and GIC
Non-Life Insurers' Premi- formed with nearly 10% growth, clock- Re. Over 90% of the risk is reinsured
ing Rs. 2,916.75 crore in premiums.
ums Up 6.3% in May to Rs. abroad, while Indian insurers may bear
New India Assurance led among gen- Rs. 100-150 crore of the liability.
22,127 Crore eral insurers with a 22.47% jump in IRDAI has instructed insurers to fast-
India's non-life insurance sector re- premiums to Rs. 2,944.6 crore. ICICI track claims, waive formalities, and file
ported a 6.3% year-on-year increase in Lombard grew modestly by 2.41% to weekly updates.
gross direct premiums in May 2025, Rs. 2,155.2 crore, while Bajaj Allianz
reaching Rs. 22,126.72 crore, sup- General Insurance saw a robust Swiss Re to Host Nearly
ported by strong performance from 20.98% increase, reaching Rs. 1,322.5
standalone health insurers. Half of Global Tech Talent
crore in the same period.
General insurers posted premiums of in India
Rs. 19,209.97 crore, a 5.72% rise from Air India Crash Likely to Swiss Re is set to have 40-50% of its
Rs. 18,170.11 crore in May 2024. global tech workforce based in India,
Standalone health insurers outper- Trigger Massive Insurance with its centres in Bengaluru and

The Insurance Times July 2025 7