Illegal fireworks or not, insurance companies 'have to honour claims'

Dubai: Insurance companies have to honour claims in cases of fire, even if the incident has been caused by the illegal storage of explosives.

The news comes in light of Wednesday's huge fire in Al Quoz, which destroyed more than 70 warehouses.

Debasis Basu, regional corporate manager, AXA Insurance Gulf, said: "The insured can claim on their insurance in cases like these, because ultimately it's a fire. However the fire started they have to honour the claim as long as it's not the fault of the insured. In a case such as arson, the insurance company will try to find out the cause."

He continued that if the fire had been started by storage of illegal goods, such as Wednesday's fire, the insurance company would have to honour the claim and then make a claim themselves against whoever had been responsible for starting the fire.

"If the fire spreads from one warehouse to another, the insurance company still have to honour the claim," he concluded.

Estimated losses from Wednesday's fire stand at Dh600 million.