IOC fire to hit ICICI Lombard, GIC

Private insurer ICICI Lombard, along with national reinsurer General Insurance Corporation of India (GIC), is likely to take a hit over the fire that broke on Monday night at the Indian Oil Corporation’s (IOC’s) oil storage depot in Taloja at Navi Mumbai.

Though final estimates were not available yet, a source close to the development said the claim could range around Rs 10-15 crore. The fire is reported to have destroyed 40,000-50,000 litres of lubricant oil.

“With a 50 per cent share, ICICI Lombard leads the policy. IOC had taken this policy for oil depots. The loss surveyors visited the site yesterday,” the source said.

Reliance General has a 25 per cent share in the policy while Oriental holds 15 per cent. National India has another 10 per cent.

The oil depot was majorly reinsured by GIC. It was insured for a total sum assured of Rs 40 crore.

“IOC has not come out with any assessment as far as the claim is concerned. Unless they intimate us, we would not know the extent of losses,” said GIC chairman and managing director Yogesh Lohiya. He said the surveyors were assessing the claim.

This is the second instance of fire at IOC. During October 2009, its storage facility at Jaipur had caught fire. The entire property had been insured for a total sum assured of Rs 210 crore. ICICI Lombard lead the consortium then too. The insurers and the reinsurer had to pay a total claim of Rs 170 crore.

“Any claim will have an impact on the premium,” said a senior ICICI Lombard executive.