Relief for companies whose warehouses were gutted in Al Quoz

DUBAI — Insurance companies are gearing up to pay the claims of the companies that suffered major losses in the devastating blaze which reduced 83 warehouses in Al Quoz to ashes in March.

By Riyasbabu (Our staff reporter)

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Published: Tue 27 May 2008, 9:09 AM

Last updated: Sun 5 Apr 2015, 7:14 PM

The fire that erupted on March 26 killed at least eight people and the companies lost goods worth millions of dirhams.

In a first claim distribution, Oriental Insurance Company yesterday released Dh12 million to Jaipur Electrical Group as an initial payment for the losses it suffered in the blaze. The cheque for the amount was handed over to the company officials.

Ranjay Verma, resident manager of Oriental Insurance Company, said, ‘Jaipur Electrical Group has suffered a substantial loss in the fire. The Oriental Insurance Company, following its motto of ‘service with security’, has arranged an interim payment of Dh12 million to Jaipur Electrical Group to provide them some relief till its claim, which is under survey and assessment by a prominent loss-adjusting firm, is finalised.

‘The owners and tenants of the warehouses are undergoing tremendous hardship as their stocks and other assets have been reduced to ashes. As a result of this, the normal business activities of many traders and businessmen have either come to a standstill or are affected badly. This is an effort from us to help our clients.’

Youssef Jabbour, chairman of Emirates Insurance Association, said the insurance companies have to pay an estimated Dh150 million to the companies which lost their stocks and warehouses in the blaze.

‘The amount could be higher but some of the companies were 'under-insured'. Currently, the insurance companies are working on claims but it will take some more time to release the claim amounts as the procedures have to be completed,’ he said.

‘The loss-adjusting companies are currently assessing the losses. The court judgement on the fire also has to come to pay the final claims,’ he said.

An official of Oman Insurance Company said, ‘We only have a small involvement with the companies that suffered losses in the fire. We are currently working on the claims. The amounts will be released once the procedures are over.’

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