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New India Assurance bags RIL's Rs 500-cr combined cover

Press Trust of India  |  Mumbai 

State-owned insurer New Assurance has bagged a Rs 500-crore combined cover from for its onshore and offshore assets for the next financial year, according to industry sources.

At Rs 500 crore, this is the single largest 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 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 is offering a combined cover to both RIL's onshore and offshore assets.

and New 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 policy has all the policies like fire, breakdown and loss of profit bundled together.

Last year 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.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 14 2017. 20:07 IST