Hazard to Harmony
Chemical Manufacturer Saves ₹3.1 Cr Using RiskMantra
Client Profile
- Industry: Specialty Chemical Manufacturing (Solvent-based products)
- Location: Dahej Industrial Area, Gujarat
- Facility Size: 80,000 sq. ft. across two buildings
- Annual Turnover: ₹230 Crore
- Previous Insurance Premium: ₹68 Lakhs
- RiskMantra Annual Cost: ₹30 Lakhs
Challenges Before RiskMantra
The plant faced high operational and insurable risks due to the nature of flammable and toxic materials:
- Poor placement of extinguishers & no sensor-based monitoring
- Non-functional hydrants during a mock drill due to stagnant water
- Manual SOPs for hazardous material handling
- Inadequate earthing records & no lightning protection system audit
- Fragmented policies across SFSP, EEI, MBD, and Public Liability
- Past claims rejected due to ‘own fault’ and exclusion clauses
RiskMantra 6-Step Implementation & Transformation
- Technical walkthrough with safety officers, shift engineers, and finance team
- Identified critical loss-prone areas like solvent storage tanks, high voltage panels, and reactor rooms
- Analyzed BOM, MSDS sheets, and historical near-miss reports
- Asset revaluation using RiskBirbal’s scientific valuation framework
- Identified a gross underinsurance gap of ₹22 Cr across fixed assets
- Sum Insured updated from ₹75 Cr → ₹97 Cr (across EEI, SFSP, MBD & Business Interruption)
IoT devices were deployed across the plant:
| IoT Sensor Installed | Purpose & Benefit |
|---|---|
| Flame Sensors | Installed above solvent tanks for instant fire alerts |
| Hydrant Pressure Sensors | Replaced manual checks — ensured water readiness |
| Extinguisher Motion Sensors | Flagged unauthorized movement or expired extinguishers |
| Voltage & Heat Sensors | Prevented panel room overheating & arc faults |
| Chemical Proximity Detectors | Detected unsafe human movement in reactor areas |
- IoT setup fully localized on client’s closed network — no third-party data visibility
- System generated internal alerts, automated SOP escalations within plant team
- Evacuation drills improved from 12 mins → 4 mins response window
- Merged multiple standalone policies into one Mega Industrial All Risk policy
- Successfully negotiated removal of exclusions: spontaneous combustion of solvents, loading/unloading, electronic item depreciation clauses
- Negotiated new Business Interruption cover based on actual working capital cycles
- Saved ₹8 Lakhs in annual premium, despite higher coverage
- Incident: Flash fire in tank farm (July) due to poor grounding during rainfall
- IoT system triggered high-voltage spike + detected flame + sounded internal siren
- On-ground team controlled fire using adjacent foam lines — avoided spread to nearby tanks
- Total Loss Avoided: ₹2.8 Cr (inferred from simulation of full-blown spread)
- Insurance claim lodged only for ₹18 Lakhs minor damage, processed within 14 working days
- Claim paid in full due to transparent documentation and IoT logs attached
- Monthly inspections conducted by RiskBirbal Engineers across:
- Earthing and Lightning Protection
- Fire Load Suppression Audit
- Housekeeping and Solvent Transfer SOPs
- Compliance reports generated to keep insurers updated and reduce risk loading
- Quarterly insurance coverage mapping vs. process changes
Quantified Financial Impact (Year 1)
| Benefit Area | Value Realized (₹) |
|---|---|
| Premium Optimization | ₹8,00,000 |
| Claim Maximization & Quick Settlement | ₹18,00,000 |
| Underinsurance Avoidance | ₹2,20,00,000 |
| Loss Avoidance via IoT + SOP Action | ₹65,00,000 |
| Total Financial Benefit | ₹3,11,00,000 |
- Cost of RiskMantra: ₹30,00,000
- Return on Investment (ROI): >10x
Conclusion
The chemical manufacturing industry is sensitive to small missteps that can result in crores of damage. RiskMantra’s intelligent and engineering-led approach ensured that both insurable and operational risks were pre-empted, monitored, and covered.
RiskMantra didn't just bring better insurance, it engineered resilience — and made ₹30 Lakhs of proactive spend deliver ₹3.11 Cr in savings and protection.