By Sarah Dutton The Chemical Industry Insurance Corporation of India (CIIIC), the country’s largest insurance company, announced the launch of a pilot project on Monday to offer financial protection for chemical industry companies.
The scheme will offer up to 100 million rupees ($2.8 million) to companies that are exposed to BHG.
This will be used to cover a minimum of two months of loss and is based on a company’s gross revenues, according to the company.
Bharat Chemical Industries (BCI), the chemical industry’s main player, will provide an additional amount of up to 10 million rupee ($2,000) to BCI employees.
The company is also offering up to 200,000 rupees to companies in a similar situation.CIIic said in a statement that the pilot project will provide the “best possible insurance for companies in need”.CIII has invested over $2.4 billion in the chemical sector and over 5,500 employees have been affected by BHGs since the crisis began in early 2014.
In 2015, BCI had estimated that at least 1.5 lakh companies were exposed to chemicals, while the number was more than 10 million.CIO is the Indian government’s body that provides financial assistance to small and medium-sized companies and has been criticized for not providing adequate insurance.