GIC plans to raise Rs.750 cr via bonds for nuclear insurance
General Insurance Corporation (GIC Re) plans to issue insurance-linked bonds to raise Rs 750 crore for creating capacity for the proposed Indian Nuclear Insurance Pool. After the breakthrough in the US-India civil nuclear deal, the government has asked GIC Re to ensure that the pool is operational immediately.
According to the Nuclear Liability Act, the pool´s capacity has to be around Rs 1,500 crore as the liability per incident is capped at the amount. GIC Re plans to issue insurance-linked bonds to raise the additional Rs 750 crore but the whole process is likely to take at least six months.