NTPC renews policy with Oriental Insurance

Oriental Insurance Company has retained National Thermal Power Corporation (NTPC) as its client. It has renewed the insurance contract with NTPC at the same premium rate as in 2005-06.

NTPC will pay a premium of Rs 51.11 crore to Oriental Insurance Company for insuring its 21 plants for Rs 64,109 crore. The premium includes service tax.

There is a six per cent rise in premium compared to the Rs 48 crore of premium payout in 2005-06 for the sum assured of Rs 54,000 crore.

"The increase in premium is due to an increase in the sum assured. We are yet to finalise last year's claims but I think the claim experience was not bad," said Y Lohia, manager, Oriental Insurance.

The NTPC policy is a combination of fire cover, machine breakdown, loss of profit due to fire and a terrorism cover.

The Shipping Corporation of India has also renewed its contract with Oriental insurance for Rs 17.51 crore this year.

Oriental Insurance had earned premium income of Rs 3,609.77 crore in 2005-06, up 16.8 per cent over a year earlier. It's net profit had declined by 14.10 per cent to Rs 283.91 crore in 2005-06 due to an underwriting loss of Rs 750 crore.