Astronaut insurance depends on reinsurance support

Providing insurance covers -- life and accident -- for Indian astronauts, who will be part of the country's manned Gaganyaan mission, depends on reinsurance support, say experts.

India plans to send three astronauts to space in its own rocket by 2021. The spacecraft will be placed in a low earth orbit of 300-400 km for a period of seven days. Two unmanned and one manned flight will be undertaken as part of the Gaganyaan mission. The project costs INR100bn ($1.5bn).

A senior actuary, Mr GN Agarwal, told Indo Asian News Service, said that a new life policy may or may not be issued on the astronauts depending on the insurer's underwriting policy, reinsurance support and other factors.

Mr Agarwal, who is a former president of the Institute of Actuaries of India and also former executive director (actuarial) of LIC, commenting on the probable premium rate, said, "There are differences in the way a risk is perceived. The base of astronauts is small. Not many people are seeking cover... the probability of a safe return may not be known and hence the chargeable premium."

Mr R Raghavan, former general manager of GIC Re and the founder-CEO of the Insurance Information Bureau,said, “While arriving at the premium, an insurer will go into various aspects including the rocket''s success record, the space agency''s success record, risk management efficiencies and several other aspects."

Industry experts said the value of the insurance cover could be arrived at by calculating the person''s earnings till his retirement and discounting to arrive at the present value. Even if there is no major reinsurance support for insuring Indian astronauts who are part of the Gaganyaan mission, insurers may benefit by the brand equity that could be built by extending the insurance cover.

Source: Asia Insurance Review