The growing scale and heightened risks associated with Indian festivals have led to an increase in both coverage and premiums for festival-based insurance.
This trend is particularly notable for large-scale festivals such as Dahi Handi, Ganesh Puja, and Durga Puja, which are driving the rise in insurance coverage and costs.
According to insurance industry experts, the formalisation of these festivals, coupled with government support, has encouraged organisers to opt for comprehensive insurance packages to safeguard their assets and participants.
For the upcoming Dahi Handi festival, set to be celebrated on 27 August 2024, insurers have already covered over 90,000 Govindas.
“As of 25 August 2024, 94,753 Govindas have been insured. With five days remaining until the festival, this number is expected to rise further, as proposals for 5,000 to 8,000 Govindas are received daily. Last year, the total insured Govindas reached 95,000,” said Sachin Khanvilkar, manager, Oriental Insurance Company.
“Each participant benefits from an insurance cover of Rs 10 lakh, secured at a nominal premium of Rs 75. So far, the state government and Vasai Virar Municipal Corporation together have contributed nearly Rs 60 lakh towards premiums, while mandals have taken insurance separately. So far, over 1,200 mandals have been insured; we hope to touch 1,500 mandals this year.”
“The premium collected for festival insurance has increased nearly fivefold for the company, rising from less than Rs 20 lakh collected five years ago to nearly Rs 1.5 crore in FY24,” said T A Ramalingam, chief technical officer, Bajaj General Insurance, adding that the company is expecting a 15-20 per cent growth in premiums for FY25 compared to the previous year.
The intervention from the state government has also played a key role in driving the demand for insurance during Dahi Handi.
According to Sumit Bohra, president, Insurance Brokers Association of India (IBAI), the Maharashtra state government’s focus on ensuring the safety of participants and the public during these large-scale events has led to higher adoption of insurance policies.
“This has also encouraged more organisers to consider comprehensive coverage to mitigate risks associated with unforeseen incidents,” he said, adding that these insurance packages cover accidental injuries during the formation of human pyramids during Dahi Handi, risks to life during the immersion of idols, property or idol damage in the case of mandap structures, decorations, and other assets, public liability, and fire hazards due to the use of electrical decorations and large gatherings.
Furthermore, industry experts believe that the state government’s intervention in Dahi Handi supported the demand for insurance for the festival, whereas the insurance demand for Ganesh Puja continues to grow slowly except for a select few larger mandals.
Insurance underwriting for Ganesh Puja, which is set for 7 September 2024, will commence after Dahi Handi. Insurers expect to see good traction in insurance for Ganesh Puja ahead of the state government elections, which is a common trend.
First Published: Aug 25 2024 | 7:11 PM IST
