Insurance companies are now expecting a total claim of Rs 250-300 crore out of the various losses caused by the fire at Reliance Industries’ Jamnagar plant.

Led by New India Assurance, a cluster of insurers including Oriental Insurance, United Insurance, National Insurance, Bajaj Allianz General Insurance and ICICI Lombard General Insurance have covered the country’s largest private sector firm’s total assets of around Rs 80,000 crore, situated at various locations.

The mega policy covering the Reliance Industries plants is mainly driven by the terms, conditions and pricing of overseas reinsurers and was renewed at the beginning of the month.

Insurance industry sources point out that RIL will claim compensation for losses caused to equipment and possible “loss of profit” till the damaged plant begins functioning normally after repairs.

“Assuming the daily profit is pegged at over Rs 10 crore, the claims will be larger depending upon the days required for the repairs,’’ said a source. RIL has already announced that the plant will remain closed for some days but has not informed when repair work will begin.

‘’If the repair work takes 20 to 30 days, a total claim over Rs 250 crore is bound to be lodged with the insurers,’’ a source said. A few years ago, the group, in similar circumstances, had lodged a claim of Rs 200 crore for the loss of 27 days’ production.

However, local insurance companies will be recovering the majority of claims from re-insurers in the London market.

The exact extent of damage to the Hydrotreater II unit, which is one of the 40 units in the refinery complex, is being assessed, said an RIL press release. As a pre-cautionary measure, the neighbouring Diesel Hydrotreating Unit — II has also been shut down.