The insurers, who have provided the cover for the plant are- National Insurance Company(38 per cent), Reliance General Insurance(23 per cent), Oriental Insurance Company (12 per cent), Iffco Tokio General Insurance(12 per cent), United India Insurance(10 per cent) and Magma General Insurance(5 per cent)
The majority -around 80 per cent- of losses will be recovered from reinsurers including GIC Re
Mumbai: Six general insurers, including three PSU general insurers, have been hit with over Rs 2000 crore loss after a fire, on last Wednesday, majorly burned down Nashik based manufacturing plant of Jindal Poly Films Limited, a leading manufacturer of flexible packaging films and a subsidiary of JPFL Films Private Limited.
The plant, located at Mundhegaon in Nashik district of Maharashtra, has a sum assured of Rs 4000 crore and premium for the cover was below Rs 30 crore.
The insurers, who have provided the cover to the plant are- National Insurance Company(38 per cent), Reliance General Insurance(23 per cent), Oriental Insurance Company (12 per cent), Iffco Tokio General Insurance(12 per cent), United India Insurance(10 per cent) and Magma General Insurance(5 per cent).
The incident has impacted more than 90 per cent production at the plant and insurers have already appointed two surveyors to assess the insurance claims.
Though, the extent of financial loss or material damage are still being assessed, re/insurers have said it will be over Rs 2000 crore.
The majority -around 80 per cent- of losses will be recovered from reinsurers including GIC Re
“As a thumb rule, in fire market retention is only 20 per cent in India, so major portion of loss will be picked up by reinsurers.. while exact details for this risk/ loss are still not available.” said an official of a foreign reinsurance branches(FRBs) which is one of reinsurers that has reinsured the plant.
After the surveyors report, the company can receive some amount from re/insurers immediately and the final amount will be paid after due process.
The company has informed the stock exchange that the affected plant is adequately insured and insurers have already been notified.
The fire incident has temporarily disrupted production operations at part of the facility.
“The production operation at part of the said plant is disturbed temporarily,” the company has said.
The company informed the stock exchanges that the exact cause of the fire is yet to be determined, and a detailed assessment of the damage is underway.
Local authorities said the fire broke out in the raw material warehouse at the plant and spread to other parts of the unit, fuelled by chemicals and plastic stored at the site.
Loud explosions were reported, and the blaze caused panic in the surrounding area.
According to media reports three employees were injured in the incident and taken to a nearby hospital for treatment.
The picture of the country’s economic situation is clear from this news. No company can provide coverage of two thousand crores rupees,!! You have to form a team!! This was the case even 20/25 years ago. Has the Indian economy really progressed?
In Bengali
দেশের অর্থনৈতিক দূরবস্থার ছবিটাই প্রকট হল এই খবর থেকে। দু হাজার কোটি টাকার কভারেজ কোন একটা কোম্পানি দিতে পারে না,!! দল বেঁধে দিতে হয় !! ২০/২৫ বছর আগেও এরকম হত। ভারতীয় অর্থনীতি কি সত্যিই এগিয়েছে ?
The retention capacity of the Insurers has increased over the years. However, it is always preferable to distribute the risk over a number of Insures so that the balance sheet of a single company is not adversely affected in case of a major loss.
@amit Kumar ghosal Sir, you have to know how insurance covers are provided? This is the general norms, a single large cover provided by a group of insurers- about a high value insurance coverage. The amount is 2000 cr. Not 2000 rupees. In this matter why you are blaming Indian economy and our country without any reason? Insurance companies are taking risk as per their kity & ability.
A little knowledge is a dangerous thing. You must first read how insurance works. Then put whatever logic you have. This kind of awareness is perfect example of less insurance penetration & insurance density in India
Don’t comment like all-knowing leaders. First learn about insurance and then comment. Understand the issue of co-insurance and reinsurance before commenting.
In Bengali
সর্বজ্ঞ নেতাদের মত মন্তব্য করবেন না। বিমা বিষয়টা আগে জানুন তারপর মন্তব্য করবেন। কোইনসিওরেন্স ও রিইনসিওরেন্স বিষয় টা বুঝে মন্তব্য করবেন।
Properties like this with high hazard potential are always adequately reinsured by the Insurers, and there is little scope of any particular Insurer bearing a major brunt.
As it is, reported loss is likely to come down in a fair assessment and given the spreading of the risk, the loss can be easily absorbed by the Insurers under their small retentions and the Reinsurers.
it’s great national loss..really unfortunate incident…
what fire fighting efforts were made by the insured to control the loss at the initial stage is very vital to determine the amount of loss
Now onwards, insurance companies are allowing heavy discount on corporate business and will the premium be increase for retail customers>
Jindal Poly films promoters don’t pay attention to the employee safety and don’t want to incur extra cost to ensure saftey same thing happened with them last year on 1st january 2024 in jindal poly films. they paid 1 lakh rupees to each died employee because of their ignorance. govt should take action against these corrupt people and independent CBI enquiry should be conducted on BC Jindal group.
This is why financial education is very important . Every other person is either an engineer or doctor and lack basic common sense also.