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Standalone Terrorism RQBE offering

Stand Alone Terrorism

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Page 1: Stand Alone Terrorism

Standalone Terrorism

RQBE offering

Page 2: Stand Alone Terrorism

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How does we Provide Terrorism cover

• RQBE offers Terrorism cover with the support of QBE

• Primarily cover is offered through FAC inward route

• RQBE net retention on each proposal is maximum INR 1.2 crs

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Coverage comparison with Terrorism pool

Description RQBE Terrorism Pool Remarks

Construction Risk (EAR & CAR) √ √  

ALOP cover √ √ Pool offers ALOP SI up to 100 crs

Operational policy - Fire , IAR √ √  

CGL Terrorism Cover √ ×  

Event Insurance √ ×  

Port Package policy √ √  

Jewellers Block √ √ RQBE includes in transit cover

Property section for Misc policies √ √

Policy cancellation allowed × √ For pool main policy to be cancelled

Wordings International

wording Standard  T3, T4 , LMA wordings

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Capacity & Deductible Comparison with Pool

Terrorism pool – Over all liability INR 750 crs ( MD + LOP)

Deductible - 0.5% of the sum insured for each and every claim subject to

• Industrial risk - A minimum of INR 100,000 and a maximum of INR 100,000,000

• Non industrial Risk - A minimum of INR 25,000 and maximum of INR 1,000,000

• Dwellings / Shops - A minimum of INR 10,000 and maximum of INR 500,000• BI – 7 days

RQBE – Sum Insured opted by the insured. We provide lead quote from QBE on 100% basis and offer maximum capacity of

100 crs per risk ( First loss sum insured).

Deductible – Flat deductible (25 lakhs ,50 lakhs etc.any one occurrence & in aggregate , BI – Min 3 days

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Rate Terrorism Pool – Operational Policy

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Rate Terrorism Pool – Engg. Policy

All engineering policy to be rated as Industrial risk

• For shorter policies (period up to 6 Months) – 50% of annual rate• For exceeding 6 months & up to 12 months – full annual rate• For long term policy discount allowed is as below• Up to 1 year – Nil• Up to 2 year – 20% each year • Beyond 2 year – 30% each year

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Naxal Affected area

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Where we stand today

No of Proposals received as on 10.02.10 - 125

No of accounts Bound – 16

S No Name of Insured State

RQBE Premium in INR

Net to QBE in INR

Our Partcipati

on as Broker

1 Pune Solapur Highway Maharashtra 1,560,800 349,819 Leader Marsh

2 MCCPTA West Bengal 378,040 299,377 Follower Aditya Birla

3 TATA consultancy Services Various across India 737,500 729,633 Follower Direct (marsh)

4 Wizcraft International for IIFA Award Srlanka 750,000 560,000 Leader AON

5 Birla Group Terrorism cover Various across India 1,200,000 914,500 Follower Aditya Birla

6 Adhunik Power & Natural Resource Ltd. Jharkhand 433,852 342,800 Leader Aditya Birla

7 ONGC Mangalore Petrochemicals Limited (OMPL) Karnataka 852,600 840,000 Follower Aditya Birla

8 Hindalco Industries Orrisa, Madhya Pradesh 1,637,680 1,616,560 Follower Aditya Birla

9 Coastal Energen Pvt Ltd Tamilnadu 408,691 395,436 Follower Aditya Birla

10 United Seamless Tubular Pvt Ltd Andhra Pradesh 252,415 249,000 Follower Aditya Birla

11 Trichy Tollway Tamilnadu 222,790 220,000 Leader Aditya Birla

!2 Delhi Marathon Delhi 234,000 227,500 Leader Athena Insurance

13 Birla Surya Maharashtra 318,150 252,000 Follower India Insure

14 Procam International - Mumbai Marathon Maharashtra 461,475 376,600 Leader Athena Insurance

15 India Bulls Panvel Project Maharashtra 468,300 415,800 Follower Aditya Birla

16 Simhapuri Energy (SEPL) Andhra Pradesh 916,720 490,000 Follower India Insure

10,833,013 8,279,025

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Advantage of Standalone Policy form RQBE

• Lower Rate than the pool

• Lower deductible (Flat deductible)

• Long Term Policy (3 years) for operational cover

• Commission – 20% ( maximum)

• Option for premium payment in Installments ( for period over 1 year)

• No limitation on ALOP sum insured

• Coverage for location other than India

• Coverage for RSMD (case to case basis)

• Option for reinstatement

• QBE provides lead terms ( well accepted by Reinsurers/Syndicates)

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RQBE Constraint

• Limited capacity ( maximum 100 crs on First loss limit)

• Can provide terms on to the broker who approaches us first

• Project coverage for maximum period of 3 years

• No underwriting authority

• Low net retention

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Way forward

• Terrorism Treaty

• Support from other reinsurer

• Increasing Net Retention

• Training & In-house U/w Authority

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Risk not preferred by us

• Telecom Tower

• Metro ( Both construction & operational cover)

• Standalone Hotel

• Risk in Terrorism/ Naxalite/ Maoist prone area

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Information required for Quote

• Name of Insured• Location Details • Type of coverage (operational & construction)• Policy Period• Sum Insured details MD & BI ( If more than 1 loc. Details location

wise)• Limit of Liability• Wordings• Deductibles • Loss History• Any Terrorist threat• Security Details

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Underwriting Parameter

• Type of Policy ( Operational / project)• Occupancy• Reputation of client• Location Details • Policy Period• Sum Insured details MD & BI ( If more than 1 loc. Details location wise)• Limit of Liability• Deductibles • Loss History• Security Details• Any Terrorist threat

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Example

Project Policy (EAR) – Construction of Thermal power project of 1000 MW thermal power Plant

Construction policy

Sum Insured (MD) : INR 2552.94 crs Limit of Liability : INR 1,250 crs

Policy Period : 27 months + 3 months testing

Pool Premium : INR 1,13,41,540 /-

Overall Liability : INR 750 crs

Deductible : INR 10 crs ( Actually 12.76 crs)

Commission : NIL

RQBE Premium (100%) : INR 85,00,000 /-

Overall Liability : INR 1,250 crs

Deductible : 1 crs any one occurrence

RQBE share : 6.846 % of 100% ( INR 85.57 crs)

Commission : Max 20% to be shared with the intermediary

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Example

Operational Cover – Steel Pipe Mnfg

Sum Insured (MD) : INR 642.5 crs BI : 120.0 crs

TSI : INR 762.5 Limit of Liability : INR 750 crs

Policy Period : 1 year Location : Hyderabad

Deductible : MD – INR 50 lakhs BI – 14 days

Pool Premium : INR 22,81,250 /-

Overall Liability : INR 750 crs

Deductible : MD - INR 3.81crs BI – 7 days

Commission : NIL

RQBE Premium (100%) : INR 18,00,000 /-

Overall Liability : INR 750 crs

Deductible : MD : 50 lakhs BI : 14 days

RQBE share : 25.16 % of 100% ( INR 188.7 crs)

Commission : Max 20% to be shared with the intermediary

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Thank you