The National Stock Exchange (NSE) has made it mandatory for all its members to take the non-delivery-based insurance cover provided by the Oriental Insurance Company (OIC). The exchange has already submitted a sum of Rs 2 crore to OIC on behalf of its members.
According to senior OIC officials, the response to the delivery-based insurance cover has been better than expected. This despite the fact that the premium amount charged by OIC is substantially higher than that charged for the non-delivery based cover.
However, the Association of NSE Members India, in a recent letter to all its members, has asked its members not to take delivery-based cover, as the premium under policy is higher. "Some of the NSE members have not paid the premium amount hoping that the insurance company will hold fresh negotiations as the majority of the trading members are opposed to the move," informed a senior OIC official.
According to OIC officials, over 90 per cent of the claims which has come up in the past two years have been in the delivery.
