Clinical trial liability insurance to see sustainable growth
The clinical trial liability insurance segment could see a period of stable and sustained growth, as the market is expected to become more professional for trials. General insurers are of the view the recent apex court view on the issue would lead to a more orderly growth.
General insurance companies Raheja QBE General Insurance, ICICI Lombard General Insurance, Bajaj Allianz General Insurance and New India Assurance offer the product. The average size of the policies ranges from Rs 1 lakh to Rs 50 lakh and above, depending on the size of the company and the magnitude of their research.
Pharmaceutical companies and contract research organisations (CROs) are consumers of the product. Sanjay Datta, head-underwriting and claims, ICICI Lombard said they expected a sustainable growth in this segment. He added that primarily Indian pharma firms took this insurance, compared to international pharma companies.
Clinical trial liability insurance is taken by companies to protect themselves from the risks arising from bodily/physical injury caused to the individual during the process of clinical trials.
The policy covers legal liability in some cases. Post-trial risks of up to two months are also covered. However, effects such as failure of drugs and nuclear chemical risks are usually excluded from coverage.
Gisha George, head-liability insurance, Bajaj Allianz General Insurance said there could be a drop in the number of clinical trial policies after the new regulations covering the process.
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