The country's two largest airports - Delhi and Mumbai - are looking to double their terrorism insurance cover but face paying higher premiums because of rising threat perceptions, according to the Business Standard.
Reinsurance rates are said to have hardened after the 26/11 terrorist attacks in Mumbai because global reinsurers feel that airports face a bigger threat.
The newspaper reports that the airport management went to the international market to take terrorism cover for Rs10 billion (US$207 million) and now want to increase it to Rs20 billion.
Meanwhile, General Insurance Corporation (GIC) is considering raising the amount of terrorism insurance cover for a single incident at one location to Rs10 billion from the existing Rs7.5 billion. Any increase will need approval from non-life insurers which contribute to the pool, the GIC board and IRDA.
GIC manages the insurance industry's terrorism risk insurance pool which stood at Rs13 billion but which may have to pay out Rs5 billion in claims related to the November raids.
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