HSIA FireInsurance claims may take weeks to process

Business entities affected by the devastating fire at the Cargo Village Complex of Hazrat Shahjalal International Airport have begun contacting their insurance companies to claim com-pensation.

However, insurance officials said it would take at least two weeks to assess the dam-age and another month or more to process the claims.

They said no one is currently allowed to enter the burnt area, making it impossible to deter-mine the extent of the losses or identify which traders had insurance coverage and with which companies.

Khaja Manzoor Nadeem, chief executive officer of United Insurance Company, said that the process could take “at least one to one and a half months.”

“First, we need to know how the fire started. If the police or investigation committee finds evi-dence of sabotage, the claims may not be payable under standard policy terms. Otherwise, sur-veyors will verify the losses and determine the compensation,” he said.

He added that one business owner had already filed a claim for Tk1.38 lakh under a joint insurance policy, while Unilever Bangladesh informed the company that six to seven of its consign-ments were destroyed.

The fire broke out around 2:30pm on Saturday at the Cargo Village Complex, located between the airport’s post office and hangar area near Gate 8. The facility stores imported goods such as fabrics, machinery and electronic items. Officials said large quantities of flammable materi-als, including fabrics meant for garment factories, fuelled the blaze and made it difficult to con-trol.

Saifunnahar Sumi, spokesperson for the Insurance Development and Regulatory Authority (ID-RA), said, “In such cases, general insurance claims are usually handled by Sadharan Bima Corporation. Affected businesses should contact them.”

Sadharan Bima Corporation Chairman Mohammad Zainul Bari said it was too early to estimate the losses or compensation.

“We first need to confirm whether the fire was accidental or caused by sabotage. If sabotage is proven, claims may not be payable unless such coverage was included in the policy,” he said.

Several general insurance companies confirmed that affected traders had already started reaching out.

Syed Shahriyar Ahsan, CEO of Pioneer Insurance Company, said two affected business owners had contacted them.

“We are verifying their documents to determine coverage. More are expected to come for-ward,” he said.

He added that if the Cargo Village Complex itself was insured, traders might receive compensa-tion under that policy, in addition to their own individual policies.

SM Mahbubul Karim, CEO of Nitol Insurance Company, said three traders had also approached them.

“It is too early to make a final comment, but we expect a clearer picture in the coming days,” he said.

Industry insiders said that while the Insurance Act 2010 covers claim payments and policy con-ditions, most fire insurance policies include an exclusion clause that rules out compensation for losses caused by “war, invasion, terrorism, sabotage or acts of God (such as earthquakes or floods)” unless specifically covered.

Clearing and forwarding agents working at the complex said initial estimates suggest traders may have suffered losses worth several hundred crore taka.

Syed Mastafizur Rahman, advisory member of the Dhaka Customs Agents Association, said he was not aware whether the Cargo Village Complex building itself was insured.