Bermuda-based OIL Insurance Ltd., is proposing substantial improvements to its products, including increases in loss limits.

The company has called for a special shareholders meeting next month to consider the fresh initiatives, recommended by the board of directors for implementation at the beginning of the new year.

The plan was announced yesterday by president Mr. K. Doyle Stephens at the Houston Marine Insurance Seminar in Texas. The shareholders meeting is planned for October 20.

OIL is owned by 44 oil companies from the US, Europe, Canada and Australia which in turn buy insurance from the company.

Mr. Stephens said the initiatives, which are the product of a strategic issues study begun last year, are intended to make OIL more attractive to a broader market, increase its flexibility and its value to the existing customer base.

The proposals include an increase in basic limits for the company. It is proposed that the basic per occurrence limit be increased from $200 million to $250 million.

It is also proposed that the aggregation limit be increased from $500 million to $562.5 million. They propose further to eliminate limits on joint ventures, significantly opening the door to improved cover for oil companies involved jointly in industry ventures.

The current limitation recognised OIL's feeling that it was never big enough to pay multiple limit losses from a single occurrence. If approved, the company would provide the total limits to all parties, up to the aggregation limit.

The directors also want to introduce "sector weighting'' into the rating and premium plan. The idea is to amend the rating and premium plan to provide for asset differentiation according to business sector.

The oil companies, who are shareholders of the mutual, will be allowed to purchase less than full limits on the condition that they not buy any other insurance above the initial working layer of $10 million.

Shareholders will also be offered flexible limits and deductibles by asset sector. And there are plans to eliminate RCV and IBNR surcharges.

Mr. Doyle Stephens