Page 367 - Fire Insurance Ebook IC 57

The Insurance Times

Question & Answers

Q1. Write introductory note on policy issued for
oil and petrochemical industry.

Ans. Oil and Petrochemical industry, a fast growing industry
in the world is a 'high risk' area for insurance.
Underwriting of these plants against fire and explosion
risks requires special expertise as virtually everything
used in the plants may burn or explode. The potential
risk of fire / explosion is of a very high magnitude,
especially in a large complexes where bulk quantities of
highly flammable materials mostly in liquid, vapour and
gaseous form are handled.

The need for introduction of a tariff based on scientific
principles was felt in the seventies as several property
and business interruption losses exceeding Rs.1 crore
were reported.

Thus, the first version of 'Petroleum Processing and
Petroleum Refining' Tariff (now known as
Petrochemical Tariff) was introduced in the year 1976.

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 380

Copyright@ The Insurance Times. 09883398055 / 09883380339