Since inception of the scheme, only 61 insurance covers with an aggregate value of ` 5.73 billion have been issued. One plausible explanation given for the low popularity of the scheme is the perception that the cost of insurance cover is high (which is between one to 2.5 per cent per annum depending on country and tenure of investment).
It is, however, important to realize the spectrum of coverage the scheme offers by providing insurance coverage to investments against political risks including war, expropriation and foreign exchange repatriation restrictions. Thus, the Indian companies who intend to make investments in politically vulnerable countries would benefit from such insurance covers more that those having investments in developed countries.