MNRE Releases Updated List of Insurers Offering Insurance for Solar Power Plants

The Ministry of New and Renewable Energy (MNRE) has released an updated list of insurers providing specialized insurance products tailored for solar power plants. 

This announcement follows consultations with the Insurance Regulatory and Development Authority of India (IRDAI).

The updated list reflects the current landscape of insurance offerings available in the market. The refreshment of this list is poised to equip stakeholders with vital information regarding insurance products designed to mitigate the diverse risks inherent in solar power plant operations.

Key insurers and their respective products highlighted in the updated list include:

The New India Assurance Co. Ltd.: It offers the New India Solar Energy Insurance Policy, a comprehensive package safeguarding both sellers and buyers, thereby conferring a substantial marketing advantage for PV module manufacturers. The policy encompasses sales cover for PV modules under specific contracts and a buyer’s cover enabling claims in the event of the manufacturer’s insolvency.

Tata AIG General Insurance Company Limited: Introduces two policies: a Weather Insurance Policy providing coverage for losses stemming from weather index deviations. Additionally, they offer Solar Module Warranty Insurance, which safeguards manufacturers against contractual obligations regarding the extended performance and product warranties of PV modules.

HDFC ERGO GICL: Presents the Solar Panel Warranty Insurance, aimed at shielding both manufacturers’ balance sheets and the investments of solar panel buyers or sellers. The policy covers losses associated with performance and product warranty breaches, including risks related to insolvency.

ICICI Lombard General Insurance Company Limited: Offers the Photovoltaic Panel Warranty Insurance, providing coverage for up to 10-12 years of product warranty and 25-30 years of performance warranty. The policy focuses on mitigating risks related to manufacturing faults, material defects, and abnormal wear and tear.

IFFCO-Tokio General Insurance Co. Ltd.: Provides the Photovoltaic Sales Policy, encompassing performance and product warranties issued by manufacturers, with additional safeguards for buyers in case of the manufacturer’s insolvency.

Cholamandalam MS GICL: It introduces the Chola Solar Plant Protect Policy, providing comprehensive coverage for deficits in anticipated energy production arising from inadequate solar irradiation.

Reliance General Insurance Company Limited:  It introduces Reliance Solar Photovoltaic Module Warranty Insurance (Manufacturer Insurance Policy). The policy provides cover to the manufacturer of solar photovoltaic modules for product and performance warranty. The Policy also covers the buyer(s) of the solar photovoltaic modules in case of insolvency of the manufacturer. Only losses arising solely and directly from the following perils are covered for photovoltaic module failure under this policy. It includes faulty manufacturing, material defects, and material ageing.