New India Assurance wins biggest single contract with sum assured of US$38-bln

State-owned insurer New India Assurance has won a contract with the single largest insurance cover taken out by any corporation in the country to date. The premium is reportedly fixed for the mega combined insurance cover at INR5 billion (US$76 million) with a sum assured of over INR2.5 trillion (US$38 billion). The insurance policy has been taken out by Reliance Industries (RIL) for its onshore and offshore assets. More than 30 corporations have purchased similar covers since 2000. But it is the first time that New India is offering a combined cover for both RIL’s onshore and offshore assets. The cover includes RIL’s two 60 metric ton refineries in Jamnagar and its offshore assets in the Krishna, Godavari Basin. Reports have said that the combined mega policy has been reinsured by around 90%. The mega combined insurance policy cover includes fire, breakdown and loss of profit bundled together. Last year, RIL had two insurers, New India for the offshore cover and one of the Jamnagar refineries, while ICICI Lombard covered the other refinery.