UAE | General
Insurers say Naif shops considered 'high risk'
The type of businesses that were gutted in the Naif Souq blaze would be considered "high-risk" from the point of view of insurance protection policies, insurers said.
- By Shakir HusainStaff Reporter
- Published: 00:44 April 4, 2008
Dubai: The type of businesses that were gutted in the Naif Souq blaze would be considered "high-risk" from the point of view of insurance protection policies, insurers said.
Although legally it is not mandatory for businesses to seek fire insurance, most owners of local companies do buy such policies, according to insurance company officials.
Businesses that are not insured are either ignorant of the concept or not insurable, they said. It is understood that many tenants operating in Naif Souq did not have insurance protection against fire.
Higher premium
"They are definitely high-risk," said C.R. Jayakumar, general manager of Dubai National Insurance and Reinsurance Company, when asked how an insurer may view those businesses.
Scores of small shops selling readymade clothes, toys, gifts and accessories were burnt in one of the oldest markets of Dubai popular with local residents, as well as tourists.
While they may be considered high-risk, it would not be too difficult to secure fire policies at higher premiums.
"This market is very competitive so some will be willing to take the risk," Jayakumar said.
Insurance companies would typically use qualified engineers to survey the risk aspects of a building and whether the site meets Civil Defence requirements against fires or not.
An official of Al Buhairah National Insurance Company said the issue of selling fire insurance policies is not a simple one.
"There are many factors that we have to take into account like the type of construction, firefighting facilities at the site, reputation of the applicant, compliance with civil defence requirements, the type of goods stocked, and housekeeping standards," the official said on condition on anonymity.
In some cases, tenants may be uninsured but the landlord may have insured the premises.
There are many factors that we have to take into account like the type of construction, firefighting facilities at the site ... type of goods stocked."
Official at Al Buhairah National Insurance Company
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