Despite natural disasters in Japan, Australia and New Zealand increasing risk perception, state-owned Oil and Natural Gas Corp (ONGC) has managed to get a fair deal for insuring its assets.
ONGC paid $27.70 million to insure its assets in FY12, 2.4% higher than $27.05 million insurance premium paid for the previous year.
"The rise in insurance premium is lower than the 7% jump in asset value," a senior company official said. The value of assets insured has increased to $32.8 billion from $30.9 billion in the previous year.
"There was increase in risk perception because of earthquake and tsunami in Japan and other natural disasters in Australia and New Zealand. Many expected that rates may harden and companies may have to pay more for insurance cover. But we have been able to get a good rate," the official said.
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