India’s insurance industry creates ₹500 crore fertilizer pool to cover Russian exports

To provide insurance cover for fertilizers imported from Russia and Belarus, Indian insurance industry has created a “fertilizer pool” of Rs 500 crore, a senior industry official said.



“Since European reinsurers are unwilling to provide reinsurance support to imports from Russia and Belarus and while India imports a significant volume of its fertilizers from these two countries, the non-life insurance industry has decided to create a pool of Rs 500 crore,” the statement said. senior industry official who prefers anonymity, told IANS.

The official said most of the pool amount will be contributed by the national reinsurer General Insurance Corporation of India (GIC Re) and all other multi-line non-life insurers will also contribute to the pool corpus.

The reinsurers in Europe and the US do not provide reinsurance cover for goods leaving Russia and Belarus because of the Russian military action in Ukraine.

The premium collected for the fertilizer imports are ceded to the pool by the primary insurers after deducting some administrative costs.

Any claims will be paid from the pool.

This will be the third insurance pool in India after terrorism and nuclear insurance pools.

The manure pool has been sanctioned by Insurance Regulatory and Development Authority of India (IRDAIA†

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