
Radar | Sep 10,2021
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 | Sep 10,2021
Fortune News | Feb 19,2022
Fortune News | Apr 20,2019
Covid-19 | Mar 06,2021
Radar | Dec 25,2021
Radar | May 16,2020
Fortune News | Nov 20,2021
Radar | Jul 24,2021
Fortune News | Aug 14,2021
Fortune News | Feb 08,2020
November 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
November 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
October 16 , 2021 . By HAWI DADHI
Residing in a country with no capital market, an organised marketplace for trading se...
August 28 , 2021 . By HAWI DADHI
The streets of Addis Abeba are as varied as they are many, although too many of them have yet to be named. From the narrow alleyways of the...
May 14 , 2022
Diana Yohannes is one of those actively engaging in social media platforms with her T...
May 7 , 2022
The Ethiopian Economic Association (EEA) recently proposed the formation of a macroec...
April 30 , 2022
There is no ambiguity in the UNDP's assessment of Ethiopia’s economic performance a...
April 22 , 2022
Most African countries top the list when ranked on the prevalence of conflict, food i...
Put your comments here