With Indian clinical research business booming with large number of trials conducted in the country, the trend is equally significant to insurance companies. The domestic and foreign pharmaceutical sponsors involved in clinical trials are essentially seeking insurance cover for risks involved in these trials.

Major pharma companies like Ranbaxy, Dr. Reddy's Labs, Cipla, Zydus Cadila, Sun Pharma, and multinationals like GSK, Pfizer, Eli Lilly, Aventis Pharma, Novartis, and many others are ensuring a proper insurance cover in order to meet the risks associated with clinical trials.

Indian insurance companies like ICICI Lombard, Bajaj Alliance, Cholamandalam, National Insurance, and New India Insurance are offering insurance for clinical research projects in the at present. According to sources, in the last couple of years, companies involved in clinical trials in India have signed about 100 insurance deals.

"Clinical trials insurance is an example of liability insurance. Traditionally MNC pharma companies have gone for such a cover before participating in a clinical trial. Now, India becoming a destination for clinical studies, the foreign companies have made it mandatory for their partners in India to take insurance cover for the trials. The trend has caught even with Indian companies, with major Indian companies ensuring a cover before participating in trials," said Ram Mohan, assistant vice president, Marsh India Pvt Ltd. Marsh is one of the leading global insurance brokerage firms.

Before deciding the cover amount, the insurance companies verify the consent approval of the patients involved in the trials, the protocol designed for the trials, the credibility of the company, the drug used in trials and its novelty, the criticality of the illness for which the drug is used against, etc.

The insurance cover in India would range between Rs 50 lakhs to $10 million. Foreign companies generally go for a cover ranging between $ 10-15 million. "Indian companies could afford to cough only Rs 50 lakh to Rs 1 crore on an insurance cover. However if it is a multi-million dollar trial involving foreign companies, the Indian partner is always supported by a reinsurance backup from the foreign pharma company," said Ram Mohan.

Marsh India set up its pharma practice three months ago. However, during the last two months, Marsh has been able to broker clinical trials insurance deals for 12 pharma companies. So far, the largest deal, which Marsh has been able to broker, was for a MNC for a sum insured of $ 15 million.