Radar | Apr 25,2020
March 30 , 2019
By NOEL MINWAGAW ( FORTUNE STAFF WRITERS )
East African Tiger Brand Industries, a manufacturer of personal care and food products, received 24.1 million Br in claims from United Insurance Bank on March 28, 2019.
The compensation was paid for fire damages incurred by East African at its Bishoftu warehouse on January 31, 2019.
East African Tiger Brand has been a client of United Insurance since September 2017 and had renewed its policy. The policy covers 13 different areas that range from automobiles to workers’ safety.
The Insurance Company paid the claim at the head office of East African Holdings S.C on Ethio-China Street. The company, which has 1,000 employees, has four units, which produce personal care, home care, packaging and food products. Since the company lost raw material it had imported in the warehouse fire, it had to continue production using local supplies, albeit at a slower pace.
The company was formed as a joint venture by East African Holdings and South African Tiger Brands almost a decade ago and was announced dissolved in 2016. East African Holdings EAG made an offer to buy Tiger Brand’s shares, and the divorce was completed last year.
Now that private companies are allowed to construct and rent out industrial parks, East Africa is planning to develop its land with sheds that can be used for industrial purposes, according to Ahmed Nuru, chairperson of East African.
“United should be commended because it finished its assessments as quickly as possible and settled our claim,” he said. “The fact that we were able to receive the compensation this quickly will help us get back to producing at our previous capacity as soon as possible."
United Insurance is one of the oldest insurance companies in Ethiopia. Established a quarter of a century ago with 25 million Br in paid-up capital, it paid 216 million Br in claims in the last fiscal year, an 18.6pc increase from the previous year.
The highest claim United paid was 52 million Br, and it was settled with the Ethiopian Roads Authority (ERA) six years ago. United was a guarantor for advance payments extended by ERA to Tibebe Construction and for the due performance of the contractor. The contract was later terminated by ERA.
Fire accidents are commonplace at factories, which is why almost every factory has fire insurance, according to Sewale Abate (PhD), assistant professor of finance and investment at Addis Abeba University’s College of Business & Economics.
“In a country where it’s usual for insurance companies to drag their clients through lengthy court battles, what United did could help it gain more clients,” said Sewale.
PUBLISHED ON
Mar 30,2019 [ VOL
19 , NO
987]
Radar | Apr 25,2020
Radar | Jun 08,2019
Radar | Feb 16,2019
Fortune News | Sep 14,2019
Fortune News | Apr 13,2020
Radar | Mar 09,2019
Radar | Feb 29,2020
Fortune News | Nov 14,2020
Radar | Nov 07,2020
Fortune News | May 09,2020
February 13 , 2021 . By TADESSE TSEGAYE
In Arada, I stopped over by a hotel in front of Cinema Empire. I sat alone inside wit...
January 30 , 2021 . By FASIKA TADESSE
The Council of Ministers approved a regulation that will establish the Liability &...
January 16 , 2021
It was a sunny day on September 12, 1974. A machine gun mounted on top of a tank was...
January 3 , 2021 . By ABDUREZAK LESMAN
Women wearing netela, a white cotton garment with woven coloured borders, and men in...
February 20 , 2021
The late Prime Minister Meles Zenawi was in parliament in 2010, taking questions on h...
February 13 , 2021
What most spooked buyers owning a billion dollars of Ethiopia’s Eurobonds was not a...
February 6 , 2021
The feeling of helplessness; the confusion to understand what is unfolding; and the d...
January 30 , 2021
There has been no American envoy serving in Ethiopia who has seen so much within such...
Put your comments here