Insurance company undercuts rivals with ultra-low bid for well insurance – 20 May 2025

At just Rs 11.05 lakh, this company walks away with the well insurance contract, edging out the competitor's bid of over Rs.1 crore—a staggering 10x spread that raises industry eyebrows.

For two wells with a combined exposure of Rs.120 crore, the operator’s annual premium payout comes in at under Rs 11.1 lakh. Is this a case of underpricing or lean underwriting in a softening market?

Industry veterans note the winning bid for full exploration-phase well insurance is comparable to routine fleet or warehouse cover—unprecedented for drilling risks involving blowouts and pollution liabilities.