Reliance Industries 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 a little 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 as per sources.
According to sources, 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.