The insurance sector regulator has estimated more than Sh10bn is to be paid as claim, as a result of the recent Westgate Mall terror attack. The amount-the largest in Kenya’s history, is equal to a third of the total industry payout for the previous year.
The Insurance Regulatory Authority (IRA) said in a report released last week that the Westgate Mall had an insurance cover amounting to Sh 6.7 billion. However, the total payout is expected to increase due to the claims from individual business tenants who lost stock and shoppers’ personal property which includes motor vehicles.
“The Association of Kenyan Insurers is in the process of collating all the claims data with the aim of establishing the full and final financial cost to insurers. Experts are speculating that the attack could carry a bill way over Sh10 billion in total,” said IRA in an industry report.
Westgate Mall was primarily insured by Kenindia and re-insured by LLoyd’s of London and the African Trade Insurance Agency (ATI).
The mall housed more than 50 businesses including anchor tenant Nakumatt Supermarkets, Barclays bank, DTB and CFC as well as restaurants, jewellery and clothes shops.
Nakumatt managing director, Atul Shah told a parliamentary committee that the stock lost in the supermarket was valued at Sh 1.6 billion.
Another tenant, Mukhtar Parkar – chairman of Dixons Electronic Store which occupied 1,000 square feet of the mall said the store had stock worth Sh 12-13 million.
Most of the Sh 6.7 billion will be paid by Lloyd’s.
Additional reporting by Business Daily© nairobiwire.com
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