ICICI Lombard pays Rs 177 cr to IOC as Jaipur unit fire claim
Mumbai   22-Jun-2010

ICICI Lombard General Insurance Company has just settled a Rs 177-crore claim on account of a fire at IndianOil's (IOC) Jaipur storage facility last October.

Casualty cover at the facility was estimated at about Rs 180 crore and ICICI Lombard, the lead insurer, paid Rs 177 crore last week. The payment was made by ICICI Lombard for itself as well as its co-insurers for the account. The insurance company held 50% of the account, followed by Oriental at 25%, Iffco Tokio at 15% and National Insurance at 10%. When an account is insured, through co-insurance, the insurers share the premium in proportion to their share of the account. The claims are also divided in the same way. But the claim is initially paid by the lead insurer, a portion of which is later reimbursed by the co-insurers.

"The IOC account was adequately reinsured with GIC-Re being the lead reinsurer. We have paid the entire claims amount to IOC. 50% of this, in proportion to the share of the co-insurers will be reimbursed by Oriental, Iffco Tokio and National Insurance," said Mr Alok Agarwal, director, ICICI Lombard. He added: "ICICI Lombard had immediately released an 'on account payment' worth Rs 50 crore. The remaining Rs 127 crore on petroleum products was released last week."