New India Assurance has made Rs 350 crore provision for a claim arising out of a fire in HPCL-Mittal Energy Limited’s Bhatinda refinery in June this year. In June 20th this year there was a fire in the Guru Gobind Singh refinery in Bhatinda which is owned by HMEL -a joint venture between Hindustan Petroleum Corporation (HPCL) and the LN Mittal Group. The fire had started in one of the pipelines of the vacuum gas oil unit.
Although the fire was brought under control the unit was shut down for repairs.
Announcing the results on Thursday , New India Assurance chairman G Srinivasan said that the company had to make a provision in respect of one large property insurance claim but refused to divulge client details.
Industry Sources, however said that the claim was in respect of the fire in the HEML refinery where the lead insurer was New India.
Srinivasan said that the company has recorded a net profit of Rs 311 crore in the first quarter an increase of 19% over the corresponding quarter last year. Buoyed by the surge in business from the Middle East, New India is opening a regional office in Dubai. The general insurer has also sought permission from the government to sell non-life policies in Canada.
Source : Times of India
Date : 1-8-2014