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In a significant update aimed at stakeholders within the solar power sector, the Ministry of New and Renewable Energy (MNRE), following consultations with the Department of Financial Services (DFS) and the Insurance Regulatory and Development Authority of India (IRDAI), has released an updated list of insurers providing specialized insurance products for solar power plants. This move comes in response to calls for an updated compilation of insurers capable of covering the diverse risks associated with solar power plant operations.
Originally outlined in Circular No. 283/72/2019-GRID SOLAR dated January 7, 2020, the list has now been refreshed to reflect the current offerings in the market. This update is designed to inform all stakeholders of the available insurance products that can safeguard against various contingencies in the solar power industry.
Among the highlighted insurers and their products are:
The New India Assurance Co Ltd offers the New India Solar Energy Insurance Policy, a comprehensive package aimed at protecting both the seller and the buyer, thus providing a significant marketing advantage for PV module manufacturers. It includes sales cover for PV modules under specific contracts and a buyer’s cover that allows claims in the event of the manufacturer’s insolvency.
Tata AIG General Insurance Company Limited presents two policies: a Weather Insurance Policy that covers losses from weather index deviations, and a Solar Module Warranty Insurance that covers manufacturers’ contractual liabilities for the long-term performance and product warranties of PV modules, including protection for buyers in case of the manufacturer’s insolvency.
HDFC ERGO GICL introduces Solar Panel Warranty Insurance, designed to protect both the manufacturers’ balance sheets and the investments of solar panel buyers or sellers, covering losses related to performance and product warranty breaches, including insolvency risks.
ICICI Lombard General Insurance Company Limited offers Photovoltaic Panel Warranty Insurance, covering up to 10-12 years of product warranty and 25-30 years of performance warranty, focusing on protection against manufacturing faults, material defects, and abnormal wear and tear.
IFFCO-Tokio General Insurance Co. Ltd. provides a Photovoltaic Sales Policy covering both performance and product warranties issued by manufacturers, with additional protection for buyers in the event of the manufacturer’s insolvency.
Cholamandalam MS GICL has the Chola Solar Plant Protect Policy, which ensures coverage for shortfalls in deemed energy production due to insufficient solar irradiation.This comprehensive update, approved by the competent authority, reflects the MNRE’s ongoing commitment to addressing the needs of the solar power sector, ensuring that stakeholders have access to relevant and effective insurance products to mitigate the inherent risks of solar power production. |
