State-owned insurer New India Assurance has bagged a Rs 500-crore combined cover from Reliance Industries for its onshore and offshore assets for the next financial year, according to industry sources. At Rs 500 crore, this is the single largest insurance cover taken by any corporate in the country so far. According to the people aware of the development, the premium fixed for the mega combined insurance cover, which came into force from February 1, is Rs 500 crore with a sum assured of over Rs 2.5 trillion. Such a policy is not new as more than 30 corporates have been availing of such covers since 2000.
But it is for the first time that New India is offering a combined cover to both RIL's onshore and offshore assets. RIL and New India Assurance could not be reached for comments. The cover includes RIL's two 60 mt refineries in Jamnagar and its offshore assets in the Krishna-Godavari Basin, industry sources told PTI. The combined mega policy provided to Reliance projects have been reinsured by around 90 per cent, the sources added. It is the largest combined cover provided to the projects owned by a single corporate house in the country. A mega combined insurance policy has all the policies like fire, breakdown and loss of profit bundled together. Last year RIL had two insurers -- New India for the offshore cover and one of the Jamnagar refineries, while ICICI Lombard covered the other refinery. Last year ONGC had paid USD 16 million for its assets valued at USD 34 billion. The cover was provided by state-run United India Insurance.
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