IRDAI is in talks with Indian National Shipowners Association (INSA) to develop a protection and indemnity insurance club (P&I club) in India, a move which will support the development of a marine insurance market in India.
Marine premium formed about 2% of the gross domestic premium in FY20. India has been looking to put in place a P&I club for a few years now. IRDAI has pointed out that while India accounts for a low share of marine insurance globally, its software prowess can be used to give India the necessary leg-up in the area.
Subhash Chandra Khuntia, Chairman, IRDAI, stated that primary insurance (for marine sector) can grow if there is presence of reinsurance and called for starting a protection and indemnity club in India.
Arti Mathur, GM, Oriental Insurance Company stressed that growth in this area depends on the availability of ecosystem. Marine insurance business in India is in the range of 1.5-2%, which further shrunk during the pandemic, Mathur added.
According to the experts, Gujarat International Finance Tec-City IFSC (International Financial Services Centre) can be a platform for such activities.
