Sep10, 2014 – Bathinda, Punjab, India The recent fire circa 20 June 2014 at the Mittal- HPCL (Hindustan Petroleum Company Limited) refinery in Bathinda, Punjab, India may result in claims of over 100 million dollars, say news reports. The refinery had been insured against accidents, as well as against loss of business due to accidents. This would be a benchmark in industrial insurance claims in India. The refinery was insured by a clutch of local insurance companies including New India Assurance, United India Insurance company and SBI General Insurance Company.
The fire and explosion was related to a vapor cloud explosion in the refinery’s vaccum oil gas treatment facility.
The incident underscores the possibility of local Indian insurance companies exposure to such mega claims from the large industrial facilities being set up in India. It also means that insurers may now take a closer look at the safety of industrial operations at Indian refineries in future and may be increase the premium.