Since launching Aryabhata in 1975, ISRO launches satellite from its Indian soil without insurance cover. Throughout its history of ISRO, its 12 missions have failed.
The Indian Space Research Organization (ISRO) is going to launch Earth Observation or surveillance satellite Cartosat-3 in the Earth’s orbit on 25 November. This satellite will act as an ‘eye’ for India facing a serious challenge of border security. India launched 12 satellites in space for the first time in 1975, so far 12 campaigns have been unsuccessful. For this reason, ISRO is making rapid progress to make the launch a success.
ISRO has incurred a loss of 2164 crores so far just from its 5 launches failing. On the other hand, if you talk of profit, ISRO has earned Rs 6289 crore in the last three years itself.
According to experts, since launching Aryabhata in 1975, ISRO has been playing with fire in a way. ISRO launches satellite from its Indian soil without insurance cover. However, ISRO has to take insurance for the satellite to be launched from abroad. Meanwhile, after Chandrayaan-2 lander failed, ISRO is now considering taking insurance for Chandrayaan-3.
Chandrayaan-3 is to be launched in the year 2020. Please tell that ISRO spent 978 crore rupees on Chandrayaan-2. Throughout its history of ISRO, its 12 missions have failed. This includes the INSAT 4C which was ravaged in the year 2006 which cost Rs 400 crore. Not only this, ISRO did not take insurance cover for Mangalyaan sent for the year 2013 for Mars. Had this campaign failed, ISRO would have incurred a loss of Rs 447.39 crore.
Know why ISRO avoids taking insurance
Even after such a failure, ISRO avoids insuring its operations. Actually, there is a big reason behind this. In order to insure, ISRO has to pay 20-25% of the entire project as premium. This increases the total cost of his project. Had the Chandrayaan-2 mission been insured, the total cost of the entire project could have increased from 195.60 to 244.50 crores.
Another reason for not getting insurance while launching satellite inside India is another. The only government company in India, New India Insurance, insures the satellite. If the satellite fails while launching, then the government company will have to pay the damages, which will eventually be paid from the public’s tax. However, there is also the advantage of taking insurance cover.
In the year 1997, ISRO received a compensation of Rs 240 crore from the French Guiana for the failure of INSAT-2D. Not only this, ISRO has launched more than 239 satellites in the last three years, this has earned Rs 6289 crore to ISRO’s commercial arm space.
Author- Suvigya Jain Singhi is Charismatic and energetic legal advisor with eight years of career experience in business and legal environments.