An Extract from the Insurance
Insider:
The Lloyd's market is the
insurer of the Nairobi Westgate shopping mall attacked by armed Somali
militants on Saturday (21 September), but the total sum insured is a relatively
modest $76mn, The Insurance Insider can
reveal.
Emerging markets political violence
specialist Chaucer heads the political violence placement that was taken out by
the mall's owner, the Kenyan company Sony Holdings.
Chaucer is supported by a list of
blue-chip Lloyd's markets including QBE, Liberty Syndicates, Hiscox, Novae and
Canopius.
However, the total sum insured for
property damage and business interruption, covered on a full-value basis, is
understood to be some 6.7bn Kenyan shillings, or $76mn.
The political violence cover
includes terrorism and carries a deductible of $50,000 for property damage and
seven days for business interruption, with a 24-month indemnity period.
However, the property cover is
believed to exclude contents. The business interruption cover will respond to
loss of rent receivable from individual mall tenants, but will avoid tenants'
loss of profits, which are either insured separately or uninsured.
Sources suggest it is too early to
estimate the total claims burden, although initial evidence gives grounds for
optimism that the mall is unlikely to be a total loss.
Lloyd's has a strong trading
relationship with Kenya, and the market for political risk insurance has grown
significantly in the East African nation since it suffered months of widespread
political rioting following the disputed December 2007 presidential elections.
NB: The extent of loss is
expected to approach total loss owing to the recent developments of the
collapse of three floors.
Further information........ http://www.businessdailyafrica.com/Westgate-insurer-faces-Sh6-6-billion-compensation-bill/-/539546/2007294/-/item/1/-/p7982l/-/index.html
