By Shilpy Sinha, ET Bureau
MUMBAI: Four states have taken risk covers aggregating to over 70,000 crore for metro rail projects in their capitals, bringing a windfall for insurance companies.
After the successful execution of the Delhi Metro rail service, similar projects were launched in Mumbai, Hyderabad, Chennai and Bangalore.
These projects are in different stages of completion.
“Insurance companies such as Royal Sundaram, United India, National, New India and Reliance General have earned about 300 crore from these projects,” a senior executive of a general insurance company said.
According to sources, the insurance policies bought by the state governments are for the construction and installation phases and cover property, including plant, equipment, finished goods and raw materials, against damage due to fire, riots and terrorism.
“Insurance companies have insured the construction part, including advance loss of profit,” said G Srinivasan, chairman and managing director of United India Insurance Company.
“We have insured the Hyderabad project under a comprehensive policy. The contractor has insured some parts of the metro rail project,” he said. More info