The Narendra Modi-led government’s focus on renewable energy has certainly opened up new avenues as far as insurance and reinsurance companies are concerned with companies like Bharat RE Insurance Brokers looking at offering warranty insurance for solar photovoltaic (PV) modules.
“We have started talking to international underwriters for warranty insurance for solar PV modules,” Bharat RE Insurance Brokers director- global strategy and special projects TL Arunachalam told Deccan Herald.
Insurance for solar PV modules is already available globally and since the current government has a huge thrust on renewable energy, we are planning to provide it to India with some of the overseas underwriters, Arunachalam added.
India is looking to more than double the share of renewable sources in its energy basket to 15 per cent in a decade from around 6 per cent currently.
Bharat-RE is a part of the Shriram conglomerate which has significant presence in transport finance, consumer finance, life insurance, general insurance, stock broking and distribution businesses.
It provides corporate insurance and risk management consultancy and insurance broking services.
It also provides re-insurance broking services for direct insurance companies on an international scale.
According to Arunachalam, consumers may now have to pay higher premiums when it comes to flood insurance due to the increasing instances of floods and natural calamities recently.
“Storm, tempest, flood and inundation (STFI) premiums are likely to go up by 30-50 per cent when the policies come up for revival in April due to the high amount of floods and other natural disasters that happened recently in Chennai, Jammu and Kashmir, Uttarakhand and many other places,” Arunachalam said.
As far as the Budget expectations are concerned, Arunachalam said that the industry is looking forward to simplified regulations.
“Talks are on between the government and the industry to ensure that there is no tinkering as far as the commission structure is concerned,” Arunachalam said.
“We also want insurance regulations to be simplified besides allowing sub-broking in the country’s direct insurance market,” Arunachalam further added.