Insurance claims damage ONGC reputation

Vol 4, PW 19 (25 Oct 00) News in Brief

There's growing concern at ONGC over figures that show it collects more from insurance companies than it pays as premium.

MA Warshi, Group General Manager (finance), writing in an in-house circular, said this year ONGC received most of its $75m as compensation forlast year's blow out of the B-121 platform. "The B-121 blow out claim of ONGC is one of the largest claims reported in the international energy market," writes Warshi, " Such claims are not a healthy trend from the insurer's point of view and do not reflect well upon the operational and safety standards of the company." This trend, Warshi says, "will lead to an increase in insurance premiums for ONGC." Insurance premiums against money received in claims by ONGC between 1996 and 2000 Year Premium paid Claims received Assets insured 1996-97 $11.32m $33.90m $11.400bn 1997-98 $11.69m $18.56m $11.768bn 1998-99 $9.50m $31.77m $12.413bn 1999-00 $10.69m $39.43m $12.962bn 2000-01 $17.50m $75.00m $13.410bn