Home-grown insurance now available for Indian satcoms

Details: Vaughan O'Grady; Category: Satellite Networks; 13 May 2024; 10126 views

General insurance provider Tata AIG has launched what it calls its Satellite In-Orbit Third-Party Liability Insurance policy for satellite manufacturers and operators in the Indian space industry – a first, it seems, for Indian insurance provision.

Tata AIG says the insurance offers comprehensive coverage for third-party bodily injury and third-party property damage in the event of an incident involving a satellite in orbit, aligning with international standards and best practices.

It also points out the market opportunity: the Indian space industry is “experiencing phenomenal growth”, with a projected market size reaching tens of billions of dollars. With the privatisation of space launches, the company suggests that India is targeting a fivefold increase in its global launch market share, projected to reach US$47.3 billion by 2032.

This is big business already, of course. To give an idea of some of the areas that can need covering, insurer Lloyds of London cites pre-launch, launch, third party liability for bodily injury or property damage, failure to meet contractual obligations, asset physical damage, business interruption, loss of revenue and data breach liabilities from cyber-attacks, among others.

It doesn’t seem that Tata AIG has all these areas in its sights, although there certainly seems to be no shortage of need for the product it is offering.

Sushant Sarin, President, Commercial Business, Tata AIG General Insurance, is widely quoted as saying: “This innovative product caters to the growing needs of satellite manufacturers and operators in the Indian space sector, especially in the wake of the recent solar storm that highlights the potential hazards faced by orbiting spacecraft.”