BPCL’s insurance cost nearly doubles
McDonald's has dropped many items from the menu of the 13 stores which it has reopened in Delhi-NCR after its agreement with partner Vikram Bakshi. It has removed items such as McAloo Wrap, Chicken McGrill, Egg Wrap, Grilled Chicken Wrap, and Maaza beverage. Also, the menu boards, tray mats, and packaging have a new design to be consistent with McD’s simple, modern brand identity. Shares in various Adani Group companies, including those of flagship Adani Enterprises Ltd, surged on Monday after exit polls predicted Prime Minister Narendra Modi would return to power, even as Australian poll results also spelled good news for the conglomerate. Adani Enterprises rose as much as
29 per cent in afternoon trade, its sharpest intraday gain in over two years. Other Adani Group stocks such as Adani Power, Adani Gas and Adani Green Energy Ltd were all up more than 15 per cent in afternoon trading.
The rally in Adani stocks outshone a broader market rally, which saw the benchmark indices close 3.7 per cent higher.
Billionaire Gautam Adani's rapid ascent to the top tier of Indian business is often associated with the rise of Modi, who also from Gujarat. Shares of Adani Enterprises have risen by about 170 per cent since Modi assumed power, compared to around 40 per cent under the previous Congress-led regime. Adani has in the past brushed off any notions that he has been granted undue favours. Separately, news that Australia's conservative coalition has swept back to power with an outright majority also boded well for Adani Mining Australia, which has been struggling for years to kick off its ambitious Carmichael coal mine project in Queensland due to environmental concerns. Adani used the election results to slam the labour government in the state, saying the poll verdict reflected public consensus on the mine. "Let's hope they (Queensland government) realise it is time to start listening to the people of Queensland," Lucas Dow, CEO. is Large claims of around Rs 600 crore from the insured refineries at Mahul, Kochi, Bina and Numaligarh have nearly doubled the insurance premium for Bharat Petroleum Corporation Ltd (BPCL) even while its insured assets have remained the same for 2019-20.
According to a source, a fire at the state-run oil marketer’s Mahul refinery in Mumbai has resulted in one of the largest insurance claims so far last year of around Rs 450 crore. The Bina, Madhya Pradesh, refinery had a fire claim of Rs 60-70 crore while the Kochi, Kerala, refinery made a claim of Rs 12-15 crore. As a result, the premium on renewal of the property insurance cover this year for BPCL has nearly doubled to around Rs 131 crore. In 2018-19, the premium was Rs 70 crore.
According to insurance industry sources, BPCL insurance policy is a Mega Policy/Large Risk policy covering all its refineries against business interruption, physical damage, where the policy would replace the assets in case of damage, and also pay for loss of profit if the refinery is shut down for any reason.
The deductible/excess under loss of profit cover due to business interruption this year has increased to 45 days from 30 days in the last policy.
The policy has a loss limit of Rs 14,000 crore on its total assets, which are insured for Rs 1.7 lakh crore and the sum insured has remained the same this year too.
The insurance cover has been underwritten by public sector non-life insurance companies. New India Assurance is the lead insurer while the coinsurers are Oriental Insurance, United India Insurance and National Insurance. Private insurer ICICI Lombard General Insurance has also taken a small share of 2.5 per cent in the risk. The stateowned GIC Re is the lead reinsurance company, with the remaining risk has been reinsured in the international market.
In August 2018, in a statement to the stock exchanges, BPCL had said that a leak was observed in the reactor effluent air fin cooler section of the hydrocracker unit of the Mahul refinery at 2.50pm on August 8 and the resultant fire was put out at 2.10 am on August 9.