look news india
New Delhi: Engineering insurance premium in India has doubled in 4 years. This rise is due to increased investment in infrastructure during this period. During April-February (first 11 months of the financial year) in FY2024, gross direct premium in the engineering segment increased to Rs. 4,848.06 crore (full year figure is around Rs 5,300 crore). This premium during FY 2020 was Rs. 2,634.90 crores.
According to General Insurance Council data, in the same period of the last financial year, Rs. ₹3,705.35 crore in the first 11 months of FY2024, a growth of 30.84 per cent in gross direct premiums.
Engineering is the fastest growing business segment in the general insurance industry. Construction insurance premiums have increased due to large-scale public investment in the infrastructure sector. This has led to rapid growth in this segment. The government is increasing the share of capital expenditure in the total allocation. In the interim budget, the government has allocated Rs. 11.1 lakh crore capital expenditure target in FY 2020, which is Rs. Was 3.4 lakh crores.
Engineering insurance provides financial protection to ongoing construction projects, installation projects, machines and equipment used in the project.
According to insurance industry experts, India's economic growth over the past few years has been supported by increased investment in the construction sector and roads, metros, renewable energy, heavy industries, rural electrification, railways, green hydrogen and semiconductors. The central government, state governments and Indian industry are investing heavily in new and old projects.