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ANNUAL REPORT 2011-12
OBLIGATORY CESSIONS RECEIVED BY GIC
Class Limit of cession in Sum Insured Reinsurance
Commission
ANNEX 8
Profit
Commission
Fire, IAR `500 crore sum insured (MD + LOP) per risk Minimum 15 per
cent for all classes
except Group Health;
Minimum 10 per cent
for Group Health; and
anything over and
above this can be
as mutually agreed
between GIC and the
Insurance Company
Large risks
Marine Cargo
Marine Hull
War & SRCC
Motor
Workmen’s Compensation
General Aviation Hull
General Aviation Liability
All liability products excluding financial liability
Financial, credit and Guarantee lines,
mortgage insurance, special contingency
policies etc.
Other miscellaneous
Machinery breakdown, Boiler Explosion and
related loss of profits
Contractor’s All Risks, Erection All Risks,
Advance Loss of Profits, DSU insurance
`500 crore sum insured (MD + LOP) per risk
`25 crore sum insured per policy
`40 crore sum insured per vessel
`40 crore sum insured per vessel
No Limit*
No Limit*
No Limit*
No Limit*
`12.5 crore per policy including USA/
`25 crore per policy excluding USA
`25 crore sum insured per event
No Limit*
`100 crore per risk
`300 crore per risk (MD + LOP)
Oil & Energy `37.50 crore SI Per Risk 5 per cent
Crop/ Weather Insurance `25 crore SI per event 15 per cent
To be decided
mutually
between GIC
and insurance
company - for
all classes
Aviation (Airlines)
`300 crore SI per risk on Hull &
corresponding percentage share on other
insurances
Average terms
Note: * in respect of classes with “No Limit” on cessions, the “Indian Reinsurer” may require the ceding insurer to give immediate notice
with underwriting information of any cession to it exceeding an amount per risk specifi ed by it. Cessions in excess of such limits
will be binding subject to the notice and information been given.
MD: Material Damage; LOP: Loss of Profit; IAR: Industrial All Risks; SI: Sum Insured;
SRCC: Strike, Riot and Civil Commotion; DSU: Delay in Start-up Insurance.
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