Purchasing Business Insurance in India

As with any investment, there is risk.  Investing in India is risky, but not as risky as investing in other foreign markets such as China.  While India has rules and regulations on foreigners investing in or starting business in India, they do recognize private property and non-public entities, giving one a sense of ownership into their investment lacking in other developing nations.

Investment Risks

The larger risks of business in India are things such as the currency, variations on laws, The Ministry of Commerce and Industry, as well as the other agencies that one must have approval from.  Adding to the risk of business is the differences in laws and regulations when operating a business.  Risks such as these can be overcome with the help of businesses who thrive off of helping one transition from their own rules and regulations to those of India, such as Madaan & Co. Attorneys at law. 

Other risks are the everyday risks of business that one has so long as they are in business.  This includes accidents in deliveries, destruction of property from fires, floods, accidents, and other such disasters that an owner would not normally foresee in their day to day business activities.  To insure from such risks one needs to find an insurance company within India or a global insurance that India recognizes.

Business Insurance in India

One particular company that offers global reinsurance and risk solution is Export Credit Guarantee Corporation of India Limited (ECGC).  ECGC is a company founded in India and adheres to: The Companies Act, 1956; Insurance Act, 1938; General Insurance Business (Nationalisation) Act, 1972; General Insurance Business (Nationalisation) Amendment Act, 2002; Insurance Regulatory and Development Authority Act, 1999.

The ECGC was initially not a government entity until the General Insurance Business (Nationalization) Act, 1972 (GIBNA).  This act nationalized all of the insurance companies within India at the time.  As the main government issued insurance for investors, and the current trend to promote foreign capital into the Indian market, the insurance is reliable, but concerning as is in essence a government monopoly on domestic insurance in India.

By – Domenic Gabriella for IndiaExports.com


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