Delhi, Mumbai airports seek to double terror cover

Mumbai: The country’s two largest airports — Delhi and Mumbai — are looking to double the terrorism insurance cover but face the prospect of paying higher premiums because of rising threat perceptions.
The move comes a month after three-day terrorist attacks in Mumbai on November 26 left at least 183 people dead and thousands wounded.
A source close to the development told Business Standard that following 26/11, as the terror attacks came to be called, reinsurance rates have hardened in the global markets.
“They went to the international market to take terrorism cover for Rs 1,000 crore and now they want to increase it to Rs 2,000 crore. The global reinsurers also feel that airports face a bigger threat, which leads to a hardening of rates in the international market,” said a source dealing with reinsurance of the risk.
An email sent to Delhi International Airport Ltd (DIAL) went unanswered. A Mumbai International Airport Ltd (MIAL) spokesperson said: “As of date, we are not aware of any re-insurers seeking higher premiums on the policies.”
Asked if the higher threat perception had prompted MIAL to opt for a higher terror insurance cover, the spokesperson said: “The threat perception at the airport is always high. However, against the backdrop of 26/11, additional measures are being taken to safeguard properties and assets and human life.”
05/01/09 Shilpy Sinha & Sidhartha /Business Standard

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Categories: Airports Jan 2009