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The insurance industry in India has reportedly set up a pool to offer cover for fertilisers imported from Russia as well as Belarus as the Ukraine conflict intensifies.

Worth INR5bn ($64.1m), the new pool has secured the go-ahead from the Insurance Regulatory and Development Authority of India (IRDAI), stated IANS citing a senior official in the industry.

After subtracting certain administrative costs, the premium gathered by primary insurers to cover import of fertilisers will be channelled to the pool.

Associated claims will be paid out of this fertiliser pool, the news agency reported.

General Insurance Corporation of India (GIC Re) is said to contribute majority of the pool amount.

Other multi-line non-life insurers will also support the pool.

This is said to be the country’s third pool in the insurance space. India already has nuclear as well as terrorism insurance pools.  

“With European reinsurers not willing to provide reinsurance support to imports from Russia and Belarus and while India imports a sizable volume of its fertilisers from these two countries, the non-life insurance industry has decided to create a Rs 500 crore pool,” the news agency quoted the official as saying.

The move comes amid Russia’s ongoing military offensive against Ukraine and resultant sanctions on Russia by Western nations.

Several insurance majors have withdrawn from Russia amid the conflict, which include Zurich Insurance and AXA.

Earlier this month, Allianz agreed to sell a majority interest in its Russian operations.  

Meanwhile, the UK and EU recently announced an insurance ban on vessels carrying Russian oil.