HDFC ERGO General Insurance, India’s leading non-life insurance company in the private sector, announced the launch of Business Kisht Suraksha, a unique cover aimed at protecting the balance sheet of MFIs, financial institutions and banks in the event of a catastrophe or natural disaster.
With growing concerns of climate change and its effect on the environment, Business Kisht Suraksha aims to limit the impacts on balance sheet of financial institutions, due to non-payment of EMIs by borrowers, resulting out of listed calamities such as floods, earthquakes, cyclones, etc.
Commenting on the launch, Mr. Anurag Rastogi, Chief Actuary & Chief Underwriting Officer, HDF ERGO General Insurance Company said, “Over the past few years, we have seen a rise in natural calamities such as floods and cyclone, which impact the livelihoods of people residing in these calamity-prone areas. Moreover, such calamities also severely impact the lending businesses in these areas. Business Kisht Suraksha aims to address these concerns by indemnifying against these climatic changes whilst also protecting financial institutions from rising NPAs occurring due to the impact of natural disasters.”
Business Kisht as a product can be customised as per the needs of an individual MFI or financial institution. The product can also be tailor-made depending on the geographical presence of the borrower, MFI or any financial institution basis the perils/climatic conditions that the location is prone to. Additionally, MFIs or financial institutions also have the option of selecting the number of EMIs that might need insurance coverage concerning the lenders’ exposure.
