Importance of Adequate Insurance Cover for Infrastructure Projects -A Hydro Perspective

摘要

Development of Infrastructure projects is becoming riskier due to sudden change in the environment and hydro projectshave become more vulnerable due to natural disasters frequency and intensity of which have increased considerably in recent times. Ensuring Risk Mitigation has therefore caught the attention of project proponents with more serious a degree. Some of the risks associated with project execution can be indemnified by taking commercially available Insurance covers. However defining type ofcover, sharing the various risks and individual limits of cover are becoming more complex in recent past due to higher exposure of Insurance companies in construction projects resulting in heavy losses in major infrastructure projects including Hydro projects. This paper provides some insight into likely major risks for project development, mitigation measures for identified risks through Insurance covers and scope of various commercially available insurance covers.