- Expects full report on total damages in a week
- Believes overall claims will not exceed Rs. 500 m
- Decides to maintain general insurance terrorism cover rates unchanged, despite soaring demand
By Charumini de Silva
The National Insurance Trust Fund (NITF) yesterday said that an Independent Loss Adjuster had been appointed to quantify the total damage of the two major hotels in Colombo that were hit by suicide bombers on Easter Sunday.
“We have started the onsite assessments of The Kingsbury and Cinnamon Grand hotels yesterday with an appointed Independent Loss Adjuster. We are expecting a full report on the total damage in about a week’s time,” NITF Chairman Manjula de Silva told Daily FT following a regular monthly meeting with the insurance industry.
NITF provides reinsurance for Strikes, Riot, Civil Commotion and Terrorism (SRCC&T) activities as an elective extension to basic insurance policies issued by its member companies. It provides coverage for all property loss or damage caused by SRCC&T acts within the geographical limits of Sri Lanka.
According to him, both hotels have taken a policy which has a cap of Rs. 250 million, where 10% is deductible.
“Each of the policies obtained by the two hotels has a limitation of Rs. 250 million with a 10% deductible. This means the client has to bear the balance cost of Rs. 25 million once the 10% is deducted. In a worst case scenario, even if the damage is over Rs. 250 million, we cannot provide beyond that limitation. Therefore, the maximum amount NITF can provide to these two hotels is Rs. 450 million,” he pointed out.
Noting that there could be additional claims, albeit for smaller amounts, particularly for vehicles that may have been damaged in the explosions, de Silva opined the total claims would not exceed Rs. 500 million.
The third hotel that was attacked on Easter Sunday is the Shangri-La Colombo, part of an international chain and directly covered under a global insurance policy.
Following the multiple terrorist attacks on Easter Sunday that killed nearly 360 and injured over 500 people, insurance companies have been flooded with inquiries from both corporates and individuals to include general insurance terrorism cover.
The Chairman pointed out that during the industry meeting yesterday, they had decided not to increase the rate despite the rising demand for general insurance terrorism cover.
“We have decided to maintain the same rate which was agreed between NITF and insurance companies before the Easter Sunday attacks,” de Silva added.