The Indian insurance sector has developed a Rs 500 crore fertiliser pool to provide insurance coverage for fertilisers imported from Russia and Belarus. The non-life insurance industry has agreed to form a Rs 500 crore pool after European reinsurers refused to give reinsurance backing for imports from Russia and Belarus, despite the fact that India imports a significant amount of its fertilisers from these two countries. The national reinsurer General Insurance Corporation of India (GIC Re) will contribute the majority of the pool funds, with all other multi-line non-life insurers contributing as well.
The reinsurers in Europe and the US are not providing reinsurance cover to goods going out of Russia and Belarus owing to the Russian military action in Ukraine. The premium collected to insure the fertiliser imports by the primary insurers will be ceded to the pool after deducting some administrative expenses. The claims if any are paid out of the pool. This will be the third insurance pool in India after terrorism and nuclear insurance pools. The fertiliser pool has the sanction of Insurance Regulatory and Development Authority of India (IRDAI).
