Nuclear Power Corp of India’s insurance tender for Tarapur units 3 and 4 appears to have turned into an aggressive pricing battle, with state-run insurers quoting far below the utility’s budgeted amount. Sources said NPCIL had set aside Rs 30.13 crore, including taxes, for a one-year property damage insurance programme covering the two units.
The bidding process reportedly used a reverse auction, and premiums dropped steeply as insurers tried to secure the contract. Oriental Insurance and United India are said to have repeatedly undercut each other in the competition for the nuclear risk cover.
The development is notable because both insurers were described as having solvency ratios well below the regulatory minimum. That has put attention not only on how low the final premiums went, but also on the broader issue of pricing discipline in specialised and high-risk insurance segments.
The episode highlights the intense competition among public-sector insurers for large institutional accounts, even in complex areas such as nuclear insurance. It also underscores how reverse auctions can sharply reduce quoted premiums compared with an initial budget estimate.
