Registration document 2007 - Total.com

4
Insurance policy
The Group has worldwide tort and property insurance coverage
for all its subsidiaries.
These programs are contracted with first-class insurers (or
reinsurers and mutual insurance companies of the oil industry
through OIRC).
The amounts insured depend on the financial risks defined in the
disaster scenarios discussed above and the coverage terms
offered by the market (available capacities and price conditions).
More specifically, for:
• Third Party Liability insurance: since the maximum financial
risk cannot be evaluated using a systemic approach, the
amounts insured are based on market conditions and industry
practice, in particular, the oil industry. The insurance cap in
2006 for general and product liability was $750 million.
• Property damages insurance: the amounts insured by sector
and by site are based on estimated costs and reconstruction
scenarios under the identified worst-case disaster scenarios
and on insurance market conditions.
90
Risk Factors
Insurance and risk management
TOTAL – Registration Document 2006
For example, for the highest estimated risk of the Group (the
Alwyn field in the UK), the insurance cap was $1.1 billion in 2006.
Moreover, deductibles for material damages fluctuate between
0.1 M€ and 10 M€ depending on the level of risk, and are
carried by the subsidiary.
In 2006, as a result of less favorable insurance terms available on
the market, the Group did not renew its loss-of-operations
coverage. However, in 2007 the Group was able to obtain this
coverage once again for its principal refining and petrochemical
sites.
The policy described above is given as an example of past
practice over a certain period of time and cannot be considered
to represent future conditions. The Group’s insurance policy may
be changed at any time depending on the market conditions,
specific circumstances and on management’s assessment of
incurred risks and the adequacy of their coverage. The Group
cannot guarantee that it will not suffer any uninsured loss.