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Insurance companies face the heat

DUBAI - The massive inferno that rocked Al Quoz Industrial area on March 26 has resulted in losses to the tune of Dh600million. This would affect the insurance companies in the country, already struggling with the increasing number of fire, and road accidents, said an expert.

Youssef Jabbour, Chairman of Emirates Insurance Association who visited the site of massive inferno told Khaleej Times that the initial estimate shows that a minimum of Dh600 million losses and that figure could get bigger. "I have already received claims for Dh150 million losses caused by the fire. Other insurance companies have also been receiving similar queries," said Jabbour.

Jabbour also pointed out that the insurance sector is being weighed down by a spate of accidents. The Abu Dhabi pileup and now the Al Quoz blaze in quick succession will make it a difficult year for the business. He urged authorities to take more stringent measures to avoid such mishaps.

Amit Mulani of Oriental Insurance Company said the fire has caused millions of losses for the company as they had already received claims from five companies. "It is a tough time for us. We have just started to calculate the claims from the inferno and it is a huge amount," Mulani said.

"The Civil Defence authorities should introduce stricter measures to avoid incidents like this. There should be more checks to ensure that the safety standards are being met," he added.

Describing the situation as 'critical', Tahir Qureshi of Iranian Insurance Company said the increasing number of massive mishaps have proved to be a major headache for insurance companies.

"At the end of the day insurance companies are paying the price. Now the situation is difficult for the companies," said Qureshi.

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