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ONGC's premium increases by 15-20%: Sources
ONGC’s offshore insurance package is one of the largest insurance cover. It has remained at USD 750 million for 2009–10 as well. ONGC’s premium has increased by about 15–20% reports CNBC-TV18 quoting sources.
Oil and Natural Gas Corporation's ( ONGC ) offshore insurance package is one of the largest insurance cover. It has remained at USD 750 million for 2009-10 as well. ONGC's premium has increased by about 15-20% reports CNBC-TV18 quoting sources.
Here is a verbatim transcript of Priyal Guliani's comments on CNBC-TV18. Also watch the accompanying video.
ONGC's premium is in the range of USD 34-38 million as compared to USD 29 million the previous year.
In the last two years since 2006 and 2007, the insurance premium for this mammoth cover has been declining. In 2006-07 it was about USD 46 million dollars and 2007-08 it was USD 29 million. It remained at the same level last year but this year the premium rates have gone up by 15-20% and what we understand is that the reasons for this is firstly this is with regard to the increase in the valuation for ONGC and more importantly with regards to the rise in the reinsurance premium.
Now United India Insurance is the lead insurer for this cover along with reinsurance cover from KM Dastur and AON Global which remains the same since the last almost a decade.
