The reason being assigned to this according to ISRO is that normally only communication satellites are insured and scientific explorations are not.
ISRO also says that the insurance policy for its launches from foreign soil are issued by New India Assurance but there is not insurance for those launched from Indian soil.
ISRO has received insurance in the past for the launches of INSAT-1A, IC and 2d. But all these launches were on foreign soil from French Guyana.
The Chandrayan moon mission project is estimated to cost Rs 386 crore. However ISRO is optimistic and says that it does not require insurance since it is a scientific project.
ISRO spokesperson, Sathish says that they have not taken any insurance cover for this project since it is a scientific project.
Moreover ISRO is very optimistic about the Chandrayaan-1 and says that the launch will be trouble free. Several precautions were taken following reports of disturbances regarding weather from the east coast. However all those factors are taken care of and the launch vehicle is rain proof.
Insurance companies say that the cost of insuring space launches is extremely high and this is mainly due to high rate of failure. Due to this high rate of failure the premium rates would vary anything between 25 and 33 per cent of the insured sum.
It seems quite strange that ISRO has not decided to opt for an insurance cover despite incurring a loss of Rs 256 crore in 2006. This loss was incurred following the crash of the Geo-synchonous Satellite launch vehicle which was carrying the INSAT-4C. The launch vehicle had crashed into the sea shortly after take off.
