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January 11, 2016
Engineering and fire insurance is expected to pick up this year, after a decline in growth of 10-12% last year that was the result of few projects taking off in the country, according to industry players.
Mr K G Krishnamoorthy Rao, Managing Director & CEO of Future Generali India Insurance, said: “Stalled infrastructure projects would finally kick off in 2016, thereby boosting the engineering insurance sector as well.” Overall, industrial production numbers are also seeing positive signs now. Insurers have also been offering heavy discounts in insurance premium rates for fire and engineering business, reported Business Standard.
This segment largely covers manufacturing plants and large-scale industrial projects from fire and other risks associated with construction and maintenance. Other than manufacturing, fire and engineering policies are offered to sectors such as auto, oil & gas, power, and infrastructure. The World Bank last week projected that India will grow by a robust 7.8% in 2016 and 7.9% in the next two years, and become the fastest growing economy in the world in the next three years. For the current fiscal year ending in March, the latest estimates peg India’s GDP growth rate at 7-7.5%.