With an aim to insure and protect the interest of solar energy industry stakeholders, the Ministry of New and Renewable Energy (MNRE) has released a list of insurers offering products covering various risks associated with the solar power plants.
The list has been compiled by MNRE based on information provided by the Department of Financial Services, Ministry of Finance and Insurance Regulatory and Development Authority of India (IRDAI) regarding domestic modules.
The insurance providers include IFFCO Tokio GICL, HDFC Ergo GICL, The New India Assurance Co. Ltd., ICICI Lombard GICL, and Cholamandalam MS GICL offering various products for the solar plants.
The various policies offered by the insurers include photovoltaic sales policy, solar panel warranty insurance, photovoltaic buyers policy, solar panel warranty insurance, new India solar energy insurance policy, Chola solar plant protect policy and solar energy shortfall insurance policy, among others.
The products offered cover various risks associated with the life cycle of a solar energy plant such as contractual liabilities of PV module manufacturers’ arising out of the performance and product warranty offered to buyers, cover to PV module buyers’ if manufacturer becomes insolvent, underperformance of solar modules on account of performance degradation of panel insured below the performance warranty due to faulty manufacturing, material defects and material ageing beyond normal wear and tear, and degradation.
The policies also cover – energy shortfall due to unintentional error in calculation of target production, defect in insured energy installation, shortfall in deemed energy production due to lack of adequate solar irradiation and others as well. The policy indemnifies the insured against costs and expenses necessary to fulfil its obligation under the warranty.