Riverside Attack! All Eyes Turns on Insurance Companies as Victims File Claims

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Exactly a week after the ill-fated terrorism attack at the Dusit hotel and offices complex at 14 Riverside Drive, Nairobi, the seven-storey building has been re-opened allowing business to resume.

The government yesterday gave green light to property owners especially motorists who left their vehicles at the hotel to collect their units, as normal operations at the complex slowly resumed.

The bigger picture, however, is now on the insurance industry as property owners and persons affected seek redemption, after the tragedy that left at least 21 people dead and property worth millions of shillings damaged.

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At least 39 companies with operations at the complex were affected by the attack which also left about four vehicles burnt to ashes.

Among affected entities at the compound, which has six different buildings, include Dusit D2 Hotel (anchor tenant), Secret Garden restaurant, where one of the terrorists blew himself and Keroche Industries Ltd office.

According to insurance sector players, persons and property owners affected are expected to make claims. Those without terrorism covers could, however, miss out on compensation.

“At the moment, it is difficult to quantify but once people start claiming, we will know how many had terrorism as part of their covers,” said Washington Ndegea-chairman Bima Intermediaries Association of Kenya, the umbrella body representing all insurance agents and intermediaries.

According to Ndegea, local underwriters offer insurance covers on terrorism to motorists at premiums of as little as Sh3,000 per year, which come as an extension of the primary cover.

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Ndegea said that although it is an unfortunate incidence, businesses and individuals should seek advice from insurance companies before taking up any policies to ensure they get products that cover terrorism.

Association of Kenya Insurers (AKI) yesterday could also not quantify the claims expected from Dusit, but said affected persons have started reaching individual companies.

Majority of the claims are expected to come from non-life insurance, which is classified into 14 distinct insurance classes.

“For example at Dusit you will find that the owner of the building had insured the buildings, companies have policies on their belongings such as electronics and equipment, the bank is insured on the money and the hotel had cover for its staff. Terrorism comes as an extension of the primary cover,” explained Birian Akwir, senior manager General Insurance Business-AKI.

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