The argument or the thought of not insuring the Satelite because of the insured and the insurer are of Goverment organisations, as pointed out by a senior ISRO official in the article, is against the basic funda of general insurance. Normally General Insurance Companies re-insure their risk with re-insurers like GIC(20% Obligatory for Indian Insurance Companies),Munich-Re, Malasian-Re etc. In these kind of Individual big risks(Facultative Risk)companies reinsure with many partners to minimise the per-capita loss, and share the premium and loss. So the reason for not insuring a project like this which is funded by tax payers money in the country, is a cheap excuse for the lack of professionalism from countries' Apex space agency.
This is the height of irresponsibility. Why arent satellites insured. Does the tax payers money become so cheap for these beurocratic scientists. Is there no limit for such nonsenses.
When both are govt entities it would be foolish to insure them. But i guess without failures noone can learn. Lets hope that we have learnt from our mistakes/will learn from the mistakes and the future launches are successful. All the best to the people working towards future projects
On the face of it the argument that New India Assurance is also a Govt. Organization and so is ISRO and so does not make sense in insuring losses does not seem valid.
There is something called as Reinsurance by which the insurance companies insure their risk with other insurance companies located elsewhere and thus the complete loss is not borne by the primary insurance company all the time.
