ONGC-IRS gets IFFCO-Tokio cover
After winning a GAIL contract, leading general insurance company IFFCO-Tokio has won another contract from ONGC's Ahmedabad-based Institute of Reservoir Studies (IRS).
On October 14 (2024), ONGC awarded the one-year insurance contract to IFFCO-Tokio, replacing a policy which ran out on October 20 (2024). Under the contract, IFFCO-Tokio will cover terrorism, storms, typhoons, hurricanes, tornados, floods and inundations, fires, special perils, earthquakes and other eventualities.
By October 3 (2024), ONGC received bids from IFFCO-Tokio, Bajaj Allianz General Insurance and Shriram General Insurance. Bajaj was disqualified, leaving just two bidders in the race.
When ONGC opened price bids, IFFCO-Tokio quoted an annual premium of Rs689,970 ($8210), and Shriram General Insurance quoted Rs706,917 ($8410). "We have reassessed our assets and inventory, head-wise, and the total value stands at Rs139.21cr ($16.6m)," ONGC-IRS said in the tender.
A detailed inventory was attached to help the insurance companies work out the premiums. This included buildings (office, workshops, laboratories and residential); geological, geophysical, research, laboratory, workshop, production, electrical, data processing, office and dispensary equipment; logging units, pumps, motors and generators; engines, compressors; power generators, computers and furniture and fixtures.
Currently, the IRS has one claim under process with the existing insurance service provider for an inverter damaged by lightning. "IRS was established (in 1978) to conduct applied research for the development of reservoir engineering tools and techniques and technologies to maximise and optimise recoveries from oil and gasfields," IRS says on its website.
On September 10 (2024), GAIL awarded a marine insurance contract to IFFCO-Tokio, covering its LNG shipments worldwide. On September 17 (2024), the one-year contract became effective, and GAIL will pay an annual premium of Rs1.92cr ($230,000).