The premium for the 1998-99 policy was finalised at $9.6 milliion as against a premium of $11.6 million with a saving of $2 million for ONGC during the year.

Apart from the reducing cost, United India has managed to claim about Rs 1.75 crore from the premium paid during the previous year, lead managed by the Delhi-based Oriental Insurance."United India Insurance had insisted on the return of the amount from the international reinsurance company which, according to the company, was overpaid last year," sources said.

A high-level delegation of United India, led by its chairman SK Kanwar, had recently visited London to place the deal.

Earlier, Oriental Insurance, which had managed the ONGC insurance account during 1997-98, had lost out toUnited India. The largest General Insurance Corporation (GIC) subsidiary--New India--had also pitched for the account but in vain. According to sources, ONGC was not happy with the service provided by Oriental Insurance. The company had faced difficulties in concluding the reinsurance deal in London market at even a much higher cost last year.

However, in one of the fastest-concluded reinsurance deals the second largest general insurance subsidiary could complete reinsurance placement before March 31, 1998 and issued policy document on April 1.

The company's exposure for oil and energy insurance sector over two decades has helped it bag this assignment, said sources.

United India, the lead manager, had a share of 45 per cent of the cover while other GIC subsidiaries shared the rest. The New India Assurance, the largest GIC subisidiary, has got 25 per cent followed by National Insurance 20 per cent and Oriental Insurance 10 per cent.This is also for the first time that an insurance company which is leadmanaging the deal has been given such a large exposure. So far the maximum covered cornered by the lead manager has been 30 per cent.

Package risk structure for power producers

United India has emerged as the leader in offering package insurances to all the eight independent power producers (IPPs).

The Chennai-based company is the sole insurer with 100 per cent insurance for both construction phase and also delayed start-up for a sum of $275 million. The overall investment was envisaged to the extent of $2 billion divided over phase I and II.

The first phase is for 740 mw with an investment of about $700 million, likely to commence before December 1998.

The company is also lead insurer to the Rs 3,500-crore 9-million-tonnes Essar refinery coming up near Jamnagar.

The project is covered by an all-risk policy.

The company is also the lead insurer to automobile plants, including that of Mahindra ford, DCM Daewoo and Hyundai.