Insurers to take Rs 140-cr hit for IOC fire

Insurers are likely to take a hit of up to Rs 140 crore (Rs 1.4 billion) from the recent fire accident at the IOC marketing plant near Jaipur. The plant was insured for Rs 238 crore (Rs 2.38 billion) by ICICI Lombard as the lead insurer, while Oriental Insurance had the second-largest share, followed by Iffco Tokio and National Insurance with 10-15 per cent stake each.

Though General Insurance Corporation of India has a majority stake of 40 per cent as the re-insurer, the rest was re-insured with global reinsurers.

"The company has estimated a loss of Rs 300 crore (Rs 3 billion), which includes reconstruction cost. Since our assets were not covered, insurers will pay for loss of products," a senior IOC executive said, adding the claim from loss of products is around Rs 140 crore (Rs 1.4 billion). The company will need another Rs 160 crore (Rs 1.6 billion) to rebuild the business destroyed in the fire.

Meanwhile, the company has moved the affected marketing business to other centres.

"It is still very early to assess the extent of damage caused by the fire. We are in constant touch with IOC. Surveyors will start with the process once the fire burns out," ICICI Lombard chief executive officer and managing director Bhargav Dasgupta said.

Deora to review safety

In the wake of the recent Jaipur fire accident at Indian Oil Corporation's bulk storage depot at Jaipur, Union Minister for Petroleum and Natural Gas Murli Deora will review safety preparations at oil installations in the country at a meeting on Tuesday. Top experts from public, private and multinational companies working in the country would be present at the meeting.

On Saturday, two days after a massive fire broke out at the IOC fuel depot, the flames died down in five of the 11 storage tanks even as three more bodies were recovered from the site today, taking the toll to nine.