News Middle East21 Jul 2019

Jordan:Federation explains why insurers refuse fire cover in certain cases

21 Jul 2019

Insurance companies want to and are able to insure risk, unless prospective customers cannot meet the requirements and conditions for securing cover, Mr Majed Smairat, chairman of the Jordan Insurance Federation (JIF).

He made these comments after the insurance sector was criticised by traders and industrialists for refusing to insure some commercial complexes, shops and warehouses against fire and disasters, reported Al Ghad.

The criticism was made after a fire hit some storehouses containing used and new furniture and electrical appliances in a commercial compound. The Amman Chamber of Commerce in an initial estimate said that the losses incurred stood at JOD1m ($1.1m).

Mr Smairat said that he rejected the generalisation that insurers are refusing to provide cover, when there exist individual cases where the insurance applicant could not meet all the conditions of the insurance policy.

He added that some traders are seeking to insure “underground” warehouses without complying with required safety regulations. This means that their insurance premiums tend to be high because the risks in such cases are high.

 

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