NIC, Bajaj Allianz offers $289 mn to Punj Llyod
Kolkata-based National Insurance Co (NIC) and Bajaj Allianz General Insurance has jointly offered a $289 million (Rs 1,250 crore) cover to construction and engineering firm Punj Lloyd for ONGC's offshore platform redevelopment project at Heera oil...
By Debjoy Sengupta, TNN |
KOLKATA: Kolkata-based National Insurance Co (NIC) and Bajaj Allianz General Insurance has jointly offered a $289 million (Rs 1,250 crore) cover to construction and engineering firm Punj Lloyd for ONGC's offshore platform redevelopment project at Heera oilfields in Bombay High.
"Punj Lloyd has been awarded the contract for refurbishing ONGC's existing offshore platform at the Heera oilfields. It is a 29-month project and Punj Lloyd has bought an all-risk project insurance policy from us," V Ramasaamy, chairman and managing director of NIC told ET.
"ONGC has an existing offshore platform with pipelines at Heera oilfield which is located off the Mumbai shores. Some equipment on this platform has worn out and requires dismantling of a large number of equipment and replacement of the existing ones as well as refurbishment," said senior officials from NIC.
Heera oilfield is located 80 km west of Mumbai in the Arabian Sea. The scope of work for the project includes surveys, design, transportation, installation, commissioning of four unmanned platforms, 70 km of submarine pipeline, laying of 25 km of composite cables and modifications of existing platforms.
"The cover shields the project against natural hazards, normal risks and natural perils for dismantling, repair and reconstruction. The insurance will be in vogue for the entire 29 months that the project is on. It will also cover engineering mishaps like damage to pipelines and equipment while transportation of parts and equipment," said the NIC official.
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"It is a joint cover where NIC is lead partner. NIC will share 65% of the cover while Bajaj Alliainz has agreed of share the rest at 35%. This means that the premium at Rs 23 crore will also be shared and claims, if any, will be shared in the same proportion," said a source close to the development. Nevertheless, for such large covers, Indian insurers pass on a major portion of the risk, at about 85-90% to foreign and Indian reinsurers to minimise their exposure to possible risk. This cover will not be any different.
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