The Hindu : Business : United India pays Rs. 769 cr. to ONGC

Online edition of India's National Newspaper
Tuesday, Sep 27, 2005

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United India pays Rs. 769 cr. to ONGC

Special Correspondent

Clears 80 p.c. of small claims relating to Mumbai floods

CHENNAI: The public sector United India Insurance Company Ltd. has made an interim disbursement of $175 million (Rs. 768.56 crore) to the Oil and Natural Gas Corporation Ltd. (ONGC) for claims arising out of the recent mishap in the Bombay High North Platform.

This disbursal, it is stated, is the largest ever seen by the Indian insurance industry.

ONGC, it may be recalled, had suffered major damages when the multipurpose support vessel, Suraksha, had accidentally hit the BHN Platform recently, resulting in grave damages to the structure and the ship.

Special efforts

A release said that United India made special efforts to quickly release the huge interim payment within 50 days from the date of accident. ONGC had renewed the offshore package policy with United India, the release added.

Sources said that the total claim amount against United India by ONGC was Rs. 1,300 crore. The claim for the damage to the ONGC platform was settled fully. The balance claim pertained to incidental losses due to platform damage, they added.

Headway in settling claims

Meanwhile, United India had made a significant headway in settling the claims arising out of the recent floods in Mumbai.

The company had cleared about 80 per cent of the small (less than Rs. 50,000 category) claims that had been lodged with it in the aftermath of the deluge.

An amount of Rs. 12 crore had been paid towards settlement of claims arising out of the floods in Mumbai, it was pointed out.

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