This is being done as there is no provision for war insurance cover in the country. The Ambanis-promoted project is also located in a sensitive zone which would make it extremely vulnerable in the event of a war outbreak.

"The enquiries will be floated in the London re-insurance market shortly to find out a suitable war insurance rate for RPL's Jamnagar refinery. RPL wanted an insurance cover due to recent escalation of tensions at the border," said insurance industry sources. However, RIL managing director Anil Ambani categorically denied any plans to take a war insurance cover for the project. Since RIL is also dealing with three other subsidiaries of general insurance they are also believed to be in the process of finding out a suitable cover, insurance industry sources said.

Though Indian law does not permit war insurance cover sansthe government's go-ahead, the necessary approvals must be sought only at the final stages, sources said. In the past, the government provided insurance covers in the wars against China and Pakistan in the sixties. At that time, insurance companies collected money on behalf of the Centre.

This time around, the government has the prerogative to decide on the issue of a war insurance cover. RPL has already received Rs 85 crore worth of claims for the cyclone which damaged its Jamnagar refinery project. Though the total claims are expected to be around Rs 180 crore, RPL has received only part as the company is yet to submit the repairing reports to the insurance companies.

In the wake of the Gujarat cyclone which damaged the facilities, RPL was keen on a Rs 40-crore worth of advance loss of profit (ALOP) risk cover for its Jamnagar refinery project during the last phase of its completion. RPL is required to pay a premium of Rs 40 crore to Oriental Insurance and New India Assurance in three instalments foran insured sum of around Rs 3,000 crore.