Claim case sharing
Knowledge of oil and petrochemical product
We invited an expert on oil and petrochemicals to share his knowledge and experience with us. Through this sharing, we hope that we can have a better understanding of transporting oil and petrochemical products.
Many of you already understand that oil is a precious natural resource that can be refined into various kinds of petrochemical products at different temperatures. The lower the refining temperature, the higher the value of the products. The chart below explains this in more detail:
With so many products containing oil, when we transport oil and petrochemical products, we firstly should take note that the price of these petrochemical products will be directly affected by the price of oil. As such, customers are advised to check if the sum insured for their products is a realistic reflection of the market price. Secondly, as oil can be transformed into different products depending on the refining temperature, the chance of a total loss is smaller because even if the oil cannot be refined into products of the highest value, such as liquefied petroleum gas, there is still an opportunity to refine the oil to create products of a lower value such as bitumen for roads.