Following the alleged violation of safety norms by AMRI Hospitals in Kolkata, where over 90 people died in a major fire last week, the National Insurance Company (NIC) has ordered a fresh “risk assessment” in all contracts for ‘fire and engineering' cover worth over Rs 100 crore.
The initiative is aimed at identifying offenders that will either be made to follow the rule-book or face fresh loading on their premiums and even cancellation of insurance. NIC is the third largest fire insurer in the country, with an over 12 per cent market-share.
“We have ordered our surveyors to carry out a risk assessment of properties with insurance cover of over Rs 100 crore and seek out all those who have either misrepresented facts or flouted agreements with us,” Mr N.S. Chandra Prasad, Chairman and Managing Director, National Insurance Company, said on the sidelines of an annual summit of the Insurance Brokers' Association of India (IBAI) here on Friday.
According to him, the survey is expected to be completed in two months, following which the general insurance major will look into other properties with insurance of Rs 50-100 crore.
“Such rules are already in place. However, we want to be sure if they are being properly followed. In case violations are noticed, we will give them a chance to rectify, failing which they should face re-loading on premiums and even cancellation,” he told Business Line, adding that fresh risk-inspection should strengthen the company's portfolio. The Kolkata-headquartered insurance major earned around Rs 700 crore from fire-related premiums, of a total premium income of Rs. 6,245 crore in 2010-11.
AMRI under scanner
Mr Prasad, meanwhile, added that NIC has also ordered a scrutiny into all other AMRI facilities across the city that are covered by the insurance company. The AMRI group has an insurance cover of Rs 200 crore with NIC, he said.
“The risk assessment for other AMRI facilities will also be carried out under the present orders. We are awaiting the preliminary report of the surveyors to see if there was any alleged violation in the AMRI Dhakuria unit,” he said.