TOR saves $1.3 million on insurance premium

Tema, Jan. 14, GNA- The Tema Oil Refinery (TOR) is paying 5.2 million dollars as insurance premium for this year, as against 6.55 million dollars paid in 2003, Mr Robert Forson, Chief Executive Officer said on Tuesday.

As a result, TOR has made a savings of 1.3 million dollars, an equivalent of to 12 billion cedis representing 16 percent for the nation.

Briefing newsmen at Tema on Tuesday, Mr Forson said TOR's current assets were valued at 652 million dollars, which attracted insurance premium of 6.55 million dollars.

He said it paid a premium of 3.8 million dollars in 2002, and 1.8 million dollars in 2001.

Mr Forson attributed this to effective management plan, "because realising the high premium on the insurance cover, TOR drew a corporate management plan aimed at reducing cost and this attracted both local and foreign insurance companies".

He said while the Re-Insurers Companies in the United Kingdom had 80 percent of the premium the local insurance companies which have the Enterprise Insurance leading, also had 20 percent.

Mr Forson, who was with his Deputy Dr Kofi Sarpong, in charge of finance and commerce and Mr Enoch Aboagye, of the Legal and Administration, said the interventions by the insurance companies with the K.E.K. Insurance Brokers Limited as consultants, " TOR had made significant achievements".

In a bid to reduce the premium further, he said the companyt had placed its insurance services on tender for interested companies to bid in areas of marine, fire, and motor accidents among others.