The Hindu Business Line : Terror attacks: Corporate houses to rethink on security

Mumbai, Nov 29 The terror attacks in Mumbai have not only left companies shell-shocked but also with an increasing sense of vulnerability. This has also at a time when most of them, especially in the manufacturing sector, are grappling with the slowdown and looking for viable solutions to keep their bottomlines intact.

Security has suddenly become the buzzword and sectors such as oil & gas, heavy engineering, automobiles, power, ports etc may now have to do some serious rethinking on this subject. It is again in this context that terrorism insurance has suddenly gained prominence.

The Oberoi group has already indicated in a press conference here on Saturday that it is already covered by terrorism insurance. Its hotel in Nariman Point was badly damaged in the Mumbai attacks.

PSUs

Similarly, in the public sector arena, Indian Oil, Hindustan Petroleum Corporation and Bharat Petroleum Corporation have confirmed that their refineries (and supporting infrastructure like depots and terminals) are likewise under the terrorism insurance umbrella.

The Oil & Natural Gas Corporation has a similar safety net which is only logical given the sensitive nature of its operations on the high seas.

“It’s bad enough having a fire in a refinery or on Bombay High; a terror attack on the lines of the Taj or Oberoi would be a lot more catastrophic,” oil industry sources said.

In the private sector space, too, indications are that both Reliance and Essar with refineries in Jamnagar, Gujarat have opted for terrorism insurance. “This makes sense especially when their facilities are located so close to the border,” sources said.