Gujarat blast: 'Factory has risk insurance policy of up to Rs 310 crore'

BENGALURU: The Gujarat chemical factory, in Dahej industrial area, a blast in which 5 died and 40 workers were injured on Wednessday, is insured for upwards of Rs 310 crore, said sources.
Yashasvi Rasayan Pvt Ltd in Dahej, Surat, has taken an Industrial All Risk (IAR) policy with a sum insured of Rs 260 crore for property damage and Rs 50 crore for business interruption, said sources. The lead insurer is New India Assurance Co with 90% of the liability. With regard to death claims of workers, the payout could be above be between Rs 5-10 lakh - but it is not sure if the workmen's compensation policy is with New India. Hospitalisation coverage of upto Rs 2 lakh is the norm, said sources, adding it is possible these workers also have ESI. "The company has not filed any claim as it is currently dealing with the police and civic authorities," said sources.
Even in the LG Polymers gas leak, which saw 8 people and 1,000 hospitalised, New India was the lead insurer, which 76% share, followed by private insurers HDFC Ergo, Future Generali and Magma HDI General Insurance each having a 8% share.
With the Gujarat chemical blast, this marks a 30-day period of large claims for the insurance industry, including future claims from cyclone Nisarga; and what was received with the Vizag gas leak, Neyveli Lignite explosion and cyclone Amphan in West Bengal, said insurance sources.
Cyclone Nisarga impact is to be seen, said insurers, who were relieved that losses in Mumbai and Pune seem less than earlier feared. In West Bengal during cyclone Amphan, total insurance losses were Rs 2,300 crore; of which the aviation sector alone saw losses of about Rs 500 crore with damage to aircrafts and hangers getting flooded.
Most smaller, private aircrafts that could have got damaged in the cyclone were moved out of Kolkata airport before the onset. But large aircrafts of Air India, Spice Jet, Indigo, Vistara remained in their hangers - as the cyclone lashed.
Insurance industry faces losses of about Rs 35 crore from minor damages to aircrafts and Rs 450 crore from damage to Kolkata airport. The rest of the insurance claims - were from private car and bike owners in West Bengal, said insurers.
With the lockdown forcing industries to shut down completely or operate partially with lesser maintenance checks and lower number of workers - insurers say the number of accidents has increased across India. Close on the heels of the Vizag gas leak, there were 6 major accidents within 24 hours on June 7, 2020 including the Neyveli Lignite explosion, which left 8 injured, Chattisgarh paper mills gas leak, which left 7 injured; the Nashik factory fire incident in Maharashtra and the spinning mill fires in Tiruppur, Tamil Nadu.