RIL makes Rs 244 cr insurance claim

MUMBAI, JAN 16: Reliance Industries Ltd (RIL) has made one of the biggest claims in the insurance history of Rs 244 crore following a maj...

MUMBAI, JAN 16: Reliance Industries Ltd (RIL) has made one of the biggest claims in the insurance history of Rs 244 crore following a major mishap at its Hazira facilities few months ago. The corporate major has earlier made a Rs 100 crore claim for its Jamnagar refinery after a cyclone devastated its facilities.

Insurance officials say that for the fiscal 1998-99, RIL’s insurance claims would be highest, followed by Essar Oil claim for the cyclone devastation in its Jamnagar refinery. For the Hazira mishap, RIL’s has made Rs 84 crore claim from the Oriental Insurance as loss of SBM while another Rs 160 crore claim has been made from New India for loss of business.

As both the Indian insurance companies have taken the re-insurance cover from the international insurance companies, the entire burden of the financial loss would be passed on to them.

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Insurance officials say that RIL’s mega-claim has not reimbursed as yet as it would take some time to complete the processing of papers. If the company doesnot get its claim by March of this year, it will have to take a Rs 160 hit in its balance sheet for the fiscal 1999.

It may be recalled that the single buoy mooring of RIL sank after a ship dashed into it in November, last year. The SBM was used to feed fuel to its petrochemical complex in Hazira, near Surat. The company had simultaneously filed a case against the shipping firm and its crew has been arrested.

The largest claim made before RIL was by HPCL which sought Rs 230 crore after an explosion ripped its refinery apart in Vizag. In fact, in the fiscal 1997-98, there was a growing number of fire claims from the insurance companies by Indian corporates. Besides HPCL, the other big claims made by Indian companies in fiscal 1998 was Rs 33 claim by ICL Vikraman and Rs 22 crore claim of Bombay Dyeing for a fire in its DMT plant in Patalganga. Essar Steel also sought about Rs 22 crore for a major fire in its steel plant in Hazira.

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