Oriental Gets 140 Risk-Cover Applications
The Oriental Insurance Company (OIC) has received nearly 140 applications for delivery-based insurance cover by the NSE trading members. The insurance company has finalised a detailed policy for trading members yesterday after the two-day negotiations it had with the NSE, Australia-based reinsuring company HIH Winterthur and Jardine Insurance Consultants.
The contentious issue of pending claims for trades routed through the sub-brokers is also being sorted out. The solicitors are likely to give us a legal opinion on the sub-brokers issue in tens days, said S D Vasudeva, manager of OIC.
According to senior OIC officials, the insurance company has fully processed 14 claims under the counterfeit securities section. It has decided to set up a cut-off date for switching options once the solicitors give legal opinion on the matter. The insurance company has also decided to charge a penalty load for members with claims. The members with more than one paid claim paid during the entire policy period of 1995-97 will be charged a loading factor of 50 per cent. Members with one paid claim during the entire policy period of 1995-97 will be charged 25 per cent premium rate loading and for members with a claim outstanding during the policy period will be charged 25 per cent premium rate loading. However, this amount will be deducted only at the time claims are made.
OIC officials have admitted to the insurance company that the brokers indemnity insurance cover is making a loss.