India’s state-run reinsurer, General Insurance Corp of India (GIC Re), has entered into a reinsurance agreement with Reliance Industries, under which GIC Re will provide reinsurance support to the organisations refinery and petrochemical plants at Jamnagar and Hazira in Gujarat, according to industry reports.
There seems to be some confusion about the actual amount of coverage bought, with reports suggesting both Rs 2 lakh crore and Rs 3 lakh crore.
Were it the former, this would amount to roughly US$31.5 billion of limit placed, rising to roughly US$47.2 billion if it were Rs 3 lakh crore.
According to reports, the policy is shared across ten insurance companies, being led by New India Assurance with support from GIC Re.
When compared to last year’s cover, the policy has increased by 33%, suggests reports, although both GIC Re and Relience Industries declined to comment.
Reports claims that the policy came into effect from December 31st, 2017, with about half of the risk being placed in the global reinsurance market.
