Reliance Industries (RIL) has bought one of the largest petrochemical policies in the world with an insurance cover in excess of Rs 3 lakh crore for its refinery and petrochemical plants located at Jamnagar and Hazira in Gujarat. The cover has been provided by New India Assurance and other co-insurers with support from GIC Re, which bears the bulk of the risk in this cover.
The Rs 3-lakh-crore policy is more than 33% higher than last year's cover for over Rs 2 lakh crore. The rise in sum insured follows the increase in refining capacity to 1.24 million barrels of oil per day. The premium in respect of the cover has gone up to over Rs 725 crore.
According to insurance brokers, the presence of domestic giants GIC Re and New India Assurance has helped RIL get a competitive cover as global markets have been hardening and are looking for opportunities to raise rates. However, given the size of the risk, GIC Re has passed on half the risk to other global reinsurers.
RIL's has historically been the largest insurance cover in the country while ONGC used to be the largest buyer of offshore cover originating from India. With the recent addition to capacity, RIL appears to have turned the largest buyer overall.
Recently, RIL has successfully commissioned and achieved design throughput of the world's first ever and largest Refinery Off-Gas Cracker (ROGC) complex of 1.5 MMTPA capacities along with downstream plants and utilities.