In order to provide insurance cover to fertilisers imported from Russia and Belarus, the Indian insurance sector has created a Rs 500 crore 'fertiliser pool', said a senior industry official.
"With European reinsurers not willing to provide reinsurance support to imports from Russia and Belarus and while India imports a sizable volume of its fertilisers from these two countries, the non-life insurance industry has decided to create a Rs 500 crore pool," the senior industry official preferring anonymity told IANS.
The official said bulk 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 be contributing to the pool corpus.
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).