Reliance Industries' Rs 3,70 trillion enhanced mega risk policy renewed in 2018-19, pays Rs 700 cr premiums

In a bid to support the RIL's higher insurance cover, the  GIC Re, the state owned listed reinsurer,had augmented its capacity for any single risk from Rs 2,500 crore to Rs 3,500 crore in 2018-19. 

 

New Delhi: 

A cluster of international reinsurers led by the Munich Re, the largest reinsurer in the world, and GIC Re have recently provided the renewal cover for the India’s largest private sector corporate account- Reliance Industries’ refinery and petrochemical plants at Jamnagar and Hazira in Gujarat, during 2018-19.

 
From the primary insurers point of view, New India Assurance..the largest general insurance company, has been main insurer for the enhanced mega risk policy of the Reliance Industries  Limited(RIL) account with a sum assured of over Rs 3,70 trillion.
RIL has paid a premium of around Rs 700 crore, as against Rs 625 crore, for the  renewal  of  the cover.

 

In a bid to support the RIL's higher insurance cover, the  GIC Re, the state owned listed reinsurer,had augmented its capacity for any single risk from Rs 2,500 crore to Rs 3,500 crore in 2018-19. 
 

For the renewal of its cover in 2018-19, the RIL had added around Rs 20,000 crore of extra assets, as it had expanded its existing refinery and petrochemical plants at Jamnagar and Hazira in Gujarat, 
 

Other public sector general insurance companies like Oriental Insurance and United India Insurance and National Insurance Company have shared the cover with the NIA.. 
 

In another development, RIL also has changed its insurance brokers KM Dastur, which has been the insurance intermediary for the most sought after account in the country and has been replaced by Marsh India, a joint venture between the largest global insurance broker, Marsh and a clutch of Indian investors including Sanjay Kedia, who is the CEO of the Marsh India.
 

However, it has not been possible to get any responses from Reliance Industries as to why the company had changed its broker in the recent renewal, after so many years.
 

Sources from the London market informed that RIL had decided to change the broker to receive better services.
The refinery has the highest asset value at a single location in the world, and is also one of the largest refining complexes, with an aggregate capacity of 1.24 million barrels of oil per day. 

 

GIC Re, the 10th largest global insurer is emerging as a  global leader by providing significant support to other large players in the oil and petroleum sector, such as ONGC , Bharat Petroleum, Mangalore Refinery, Indian Oil and Cairn Energy. 
This practice also applies to infrastructure, airlines, oil and energy risk, exposures and agriculture insurance, or any exposure that goes beyond the balance sheet strength of an insurer.

 


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