Government names Hitesh Joshi chairman and managing director of GIC Re
Hitesh Rameshchandra Joshi has been appointed Chairman-cum-Managing Director (CMD) of General Insurance Corporation of India (GIC Re), effective June 16, 2026. He had been serving in an interim capacity since October 2025, and the Central Government approved his appointment under Article 83 of the Corporation’s Articles of Association.
Joshi will hold the post until his superannuation on September 30, 2028, or until further notice. He previously served as Executive Director, overseeing human resource management, international business operations, information technology, vigilance compliance, claims, audit, and budgeting.
His responsibilities included legal matters, mergers and acquisitions, digital initiatives, business intelligence, and actuarial functions. As CMD, he will handle domestic and international reinsurance operations, retrocession, enterprise risk management, strategic planning, internal audit, credit rating, and investor relations.
A Fellow of the Insurance Institute of India, Joshi brings extensive experience across all key functions of GIC Re, ensuring continuity and strong leadership for India’s largest public-sector reinsurer.
Air India defends compensation practices after Ahmedabad crash
Air India has stated it is adhering to standard industry practices in compensating victims of the June 2025 Ahmedabad Boeing 787 crash, amid allegations of coercion by some families. The crash claimed 241 lives, including passengers and crew.
Families had complained they were pressured to waive claims against third parties to receive final settlements. Air India clarified that the wording in its receipts and indemnity documents mirrors global and domestic industry norms, ensuring final settlement while protecting the airline from indirect claims by equipment suppliers or other parties.
The airline emphasised no family is forced to accept compensation within a set timeframe. The policy is designed to ensure settlements are final, while not limiting the legal rights of third parties or individuals pursuing separate claims. Air India maintains transparency and safeguards in the process to align with industry standards.
Marine insurance premiums may ease with Gulf peace
Marine war-risk insurance rates, already stabilizing after the Bharat Maritime Insurance Pool (BMIP) launch, may further decline if the US-Iran memorandum of understanding leads to durable peace and a reopening of the Strait of Hormuz.
Insurance market participants caution that premium reductions will not be immediate, as adjustments will depend on the sustained improvement of shipping conditions. During the height of the West Asia conflict, BMIP had reduced war-risk insurance rates for Indian cargo by 60-80%, offering significant relief to shipping companies.
Before the pool, reinsurers charged 2-3% of cargo value for Gulf shipments. The MoU between the US and Iran provides hope for long-term stability, yet insurers plan to phase the normalization of premiums gradually, maintaining disciplined underwriting and sufficient capacity. The BMIP remains a crucial mechanism to protect Indian trade against geopolitical risks.
India’s transactional risk insurance claims up 30%
India has witnessed a 30% year-on-year increase in transactional risk insurance claims, reflecting deeper adoption in merger and acquisition (M&A) deals. The rise underscores the growing complexity of corporate transactions and regulatory scrutiny, according to Marsh.
These policies protect buyers, sellers, and investors against losses arising from breaches of warranties, misrepresentations, tax liabilities, and other deal-specific risks. India accounted for 33% of all transactional risk insurance claims in Asia in 2025.
Private equity-backed deals represented 92% of claims, while corporate-insured transactions accounted for the remaining 8%. The report attributed the growth to the widespread adoption of Warranty & Indemnity (W&I) and tax insurance in competitive auction processes.
The surge in claims highlights how insurers and investors are increasingly relying on transactional risk insurance to safeguard against uncertainties, demonstrating the market’s maturity and the critical role of such policies in supporting complex deals.
Post M&A, insurers aim to retain war risk pool
Following the easing of US-Iran hostilities, Indian insurers plan to retain the marine war risk insurance pool to ensure continuity of domestic capacity. They aim to safeguard trade in case similar geopolitical disruptions occur in the future.
Insurers and brokers cautioned that normalization in war risk coverage would be gradual, as capacity, pricing, and underwriting standards take time to stabilize. Deepak Sankar of TATA AIG General Insurance noted that shipping activity may take months to normalize, even if the Strait of Hormuz formally reopens.
The Bharat Maritime Insurance Pool (BMIP) is intended as a permanent mechanism to support continuity of maritime trade, build resilience against geopolitical shocks, and strengthen sovereign oversight of critical risk pools.
Insurers emphasised that capacity available only during stable times cannot be relied upon during disruptions, highlighting the need for a technically sound, well-capitalised pool to ensure trade protection and risk mitigation.
Motor insurance remains valid with E-20 fuel use: ICICI Lombard
ICICI Lombard confirmed that motor insurance policies remain fully valid for vehicles using E-20 fuel. The company clarified that use of E-20 in older vehicles is not considered negligence, and claims are evaluated based on the occurrence of insured perils.
Policies cover accidental damages, theft, personal accident for owners and co-passengers, and third-party liabilities, depending on selected cover. The type of fuel used does not impact claim admissibility, and claims that would be accepted under conventional fuels are treated equally under E-20 usage.
ICICI Lombard supports the E-20 program as an environmentally friendly initiative. Policyholders are assured of seamless coverage continuity irrespective of fuel type, promoting adoption of sustainable fuel while maintaining risk protection.
The clarification provides reassurance to vehicle owners and the broader motor insurance market, ensuring clarity in claims settlement and coverage during the transition to alternative fuels.
Govt approves radar sensor use for vehicle safety
India has removed the licence requirement for radar sensors operating in the 77GHz-81GHz frequency band, allowing automakers to integrate technologies that enhance vehicle safety. This move aims to reduce road accidents, which claimed over 177,000 lives in India in 2024.
Radar sensors enable cars to detect nearby vehicles and obstacles, powering features such as emergency braking, blind spot detection, and adaptive cruise control. These advancements lay the groundwork for autonomous driving while enhancing safety for drivers and pedestrians alike.
Leading manufacturers including Maruti Suzuki, Tata Motors, and Mahindra & Mahindra, along with suppliers like Bosch and Continental, are expected to benefit from this regulatory change. By aligning India with global standards followed in the US and EU, automakers can use off-the-shelf hardware rather than India-specific models. This measure is expected to accelerate adoption of advanced driver-assistance systems and improve overall road safety.
Crop insurers push for higher ceding commissions
Insurers participating in the ongoing crop insurance renewal cycle are requesting higher ceding commissions amid favourable loss experience and rising competition among domestic and foreign reinsurers. This year, commissions of 5-8% of premiums are being sought, compared with 3-5% in the previous cycle.
Most states have floated one-year tenders this season while awaiting the Centre’s new three-year scheme, prompting insurers to factor in risk considerations like El Niño while negotiating commissions. The push reflects a more competitive reinsurance environment and the profitability of the crop insurance segment over recent years.
Industry officials noted that premium rates have gradually declined, but high competition and strong claims experience have empowered insurers to seek better terms. Negotiations are ongoing, with contracts yet to be finalised, and the market remains stable while insurers strive to secure favourable conditions for sustainable crop insurance operations.
85 maritime insurance policies issued under BMI Pool
The Bharat Maritime Insurance Pool (BMI Pool), backed by a sovereign guarantee of Rs 12,980 crore, has issued 85 policies to Indian shipping companies, reducing premiums for hull war and cargo war risk. Hull war risk premiums fell by 27%, and cargo war risk premiums dropped by 48% compared to pre-conflict levels.
Launched after West Asia tensions disrupted global marine insurance, the BMI Pool replaces traditional reinsurance with a sovereign guarantee, ensuring continuous coverage for Indian-flagged vessels. The initiative protects trade by mitigating risks associated with geopolitical instability and maritime hazards.
Debasish Prusty, additional secretary at the Department of Financial Services, highlighted the success in reducing insurance costs, while Sanjay Mokashi, GIC Re General Manager, noted that savings from reduced reinsurance requirements are passed to policyholders. The pool ensures domestic shipping resilience, strengthens sovereign risk control, and builds capacity to handle future disruptions in a predictable, sustainable manner.
Hailstorms in Kashmir boost demand for crop insurance
Kashmir’s apple growers are calling for a formal crop insurance scheme after recurring hailstorms damaged orchards across the Valley. Meteorologists reported at least seven significant hail events in the past month, causing widespread crop losses.
Bashir Ahmad Basheer, chairman of the All Kashmir Fruit Growers and Dealers Association, noted that cultivators are highly vulnerable without insurance, leaving them exposed to financial shocks. Apple cultivation generates approximately Rs 10,000-12,000 crore annually and supports nearly 3.5 million livelihoods.
Growers like Zahid Ahmad from Shopian estimated 45% damage to fruit and foliage, highlighting the urgent need for protection. While Chief Minister Omar Abdullah announced crop insurance provisions in February, the schemes are yet to be implemented. Agriculture Minister Javed Ahmad Dar stated that the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) would be rolled out within two months, though the current season will remain uncovered.
Tata AIG posts Rs 1,008 crore profit despite aviation claims
Tata AIG General Insurance reported a net profit of Rs 1,008 crore for FY26 despite handling India’s largest aviation claim in the Air India Ahmedabad crash. Conservative reinsurance policies helped protect the company’s financials.
GIC had estimated claims exceeding $400 million from the crash. Tata AIG, the lead insurer with a 45% share of the risk, fully provided for the claim in the relevant quarter, leaving exposure under Rs 50 crore after reinsurance.
The insurer’s equity capital and reserves stood at Rs 6,545 crore, with the solvency ratio marginally affected at 1.91. Tata AIG holds the second-largest market position in motor and commercial insurance and maintains steady growth in health insurance, contributing Rs 4,500 crore to annual premiums, reflecting around 40% growth. The company aims for health insurance to comprise 20-23% of total premiums to align with industry benchmarks and expand its retail health book steadily.
