Indian insurers highly exposed to terrorism risks

The terrorist claims reached 5 billion INR (106.9 million USD) over the 2008-2009 period following attacks targeting renowned hotels. This abrupt increase stems from damages sustained by Taj Mahal Palace, Oberoi Hotel and Trident Hotel, which alone account for 42% of the total amount due by insurers. Taj Mahal, insured by Tata AIG, is paying roughly 1.5 million INR (32 085 USD) for its terrorism cover. This sum amounts to 1 million (21 390 USD) for hotel Oberoi and to 0.6 million (12 834 USD) for Trident Hotel. Since 2002, Indian insurers have been pooling up to cover acts of terrorism.