$3.76m hike in insurance premium for ONGC

Vol 5, PW 20 (21 Nov 01) News in Brief

The September 11th terrorist bombings ofNew York's World Trade Centre and the Pentagon has proved costly for ONGC.

PETROWATCH learns insurer New India Assurance Company sent in a notice of cancellation to ONGC with regard to war and terrorism risk soon after the September 11th attacks. A flurry of discussions and some hard bargaining between ONGC and New India followed.

The result was that ONGC had to commit an additional premium payment of $3.76m plus 5% service tax. "This ensured coverage of insurance without any gap," reveals a source.