Intech Insurance Surveyors to assess Sigachi Industries' losses after blast

Company says they have taken insurance, which covers the plant, machinery, and employees

United India Insurance and Cholamandalam MS General Insurance have appointed Intech Insurance Surveyors and Loss Assessors to assess claims from the explosion at Sigachi Industries’ manufacturing plant in Hyderabad that led to the death of at least 39 people. 

Additionally, the company, in a statement to Business Standard, said that they have taken insurance, which covers the plant, machinery, and its employees. 

According to sources, the plant had an industrial risk policy of ₹60 crore. United India Insurance is the lead insurer and Cholamandalam MS General Insurance is the co-insurer for the Hyderabad unit of the company, they said. 

Suryanarayanan V, MD of Chola MS General Insurance said, “We would like to clarify that Chola MS General Insurance is a co-insurer only for the property section of the risk. The lead insurer for the property is United India Insurance, and they will be taking all decisions related to claims under this section.”

 

 

 

On June 30, Sigachi Industries informed the exchanges that a fire incident occurred in the vicinity of its Hyderabad Plant located at Pashamylaram, which resulted in the death of 39 team members and 33 injured workers. 

It was one of the three such plants of the company, which manufactured Microcrystalline Cellulose (MCC), a pharmaceutical excipient. According to recent reports, the death toll has increased to 44 workers. It had also said that the Hyderabad facility is fully insured, and that they are in the process of initiating the necessary claims as per standard procedures.

 

“The plant had an insurance policy by United India Insurance, with 60 per cent lead share and Cholamandalam as the co-insurer with 40 per cent. The sum insured was around ₹60 crore covering 3 units. Since one unit got damaged, the loss amount would be in the range of ₹15 crore to ₹20 crore. It seems the plant is grossly underinsured. As of now, the exact amount of underinsurance cannot be estimated as the facts are not available,” said a source aware of the development.

 

“Further, the liability would be in the range of ₹40 crore to ₹ 60 crore. Besides, the Public Liability will also be triggered in case the nearby vicinity industries and residents make a claim. It is challenging to say anything on the liability,” the source added.