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Insurance Companies receive Rs5.2b damage claims
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KARACHI - The insurance companies have received damage claims of Rs 5.2 billion so far caused by the recent country-wide violence in the wake of assassination of former Prime Minister Benazir Bhutto on December 27.

Razi Rehman Chairman Securities Exchange Commission of Pakistan disclosed this while addressing a press conference here on Friday. 

He said it was expected that insurance companies could receive more damage claims worth Rs 1 billion to 1.5 billion in next few days. Giving details, Chairman SECP said that out of total received claims by insurance companies, the major portion of Rs.4.2 billion damage claims belonged to property that was set on fire by miscreants. While Rs.460 million claims related to losses occurred to motors, Rs.140 million claims of losses occurred to marines and other miscellaneous damage claims. 

To a question that would this damage of claims result in the increase of rate of insurance; he answered that definitely the huge claims of losses would have impacted on the rate of insurance. 

The insurance companies usually fixed the rate of insurance, but it seems that after receiving huge claims, the reinsurance rates of property could be raised.

SECP chairman categorically said that the insurance companies have suffered major losses but they have to fulfill commitment regarding the damage claims payment filed by the affectees. 

It may be mentioned here that more than 300 branches of domestic banks, more than 1500 vehicles, patrol pumps, train engines and other private and public property had been either set on fire or ransacked during violence erupted after assassination of Benazir Bhutto. During these violence acts the miscreants first looted office equipments from different offices and then set on fire the furniture in the country, especially in the interior Sindh.

Worth mentioning is that the Sindh Revenue Board is also obtaining applications from the riots affected people regarding damage to their movable and immovable assets. So far it was unclear as to how much damage the recent riots have done to the overall economy in monetary terms as different insurance companies and government departments were still collecting details of damage.

 
 
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