Lebanon: Association estimates up to 30% of blast losses are insured
Source: Middle East Insurance Review | Sep 2020
The Association of Insurance Companies in Lebanon (ACAL) has said that about 70% of the damages resulting from the 4 August devastating explosion in the Beirut port are not covered by insurance.
According to ACAL’s preliminary estimates, the value of insured damages may exceed $2bn, or about 30% of the total damages resulting from the blast that range between $5bn and $10bn, reported Al Roeya. In addition, the explosion may have caused economic losses of $15bn.
An investigation is being carried out into the cause of the blast. Insurance compensation is linked to the cause – if the blast was a result of a terrorist or war action, compensation from insurers will be limited to those who hold terrorism, political risk or war damages cover.
Impact
Mr Elie Tarabay, president of ACAL, stated in a telephone interview with Al Roeya, that the impact of the blast on the marine insurance sector is limited compared to its impact on the property insurance sector, including real estate and cars, over a radius of several kilometres. The estimate is that ship and cargo losses could reach about $200m.
He pointed out that the port of Beirut has two parts, “a new area intended for new ships and still receiving ships and an old zone which is completely destroyed”. M