DAMASCUS, Syria (North Press) – Many car owners, whose vehicles were damaged by the earthquake that hit Syria, are currently wondering, “will we be compensated?”
The short answer: no. A member in the Administrative Council of the Insurance Body told North Press that natural disaster insurance is unavailable in Syria.
Those insured against natural disasters are “ten at most,” he added.
Natural disaster insurance cannot flourish in the current environment. In the real estate sector, all buildings would have to get insurance against earthquakes, the source pointed out.
No official statistics regarding the actual extent of damages, especially of cars, exists at the moment, the source says.
Only one insurance company
Only one insurance company exists in Syria – the Arab Union for Insurance. The economic sanctions imposed on Syria have made international companies avoid dealing with Syrian companies, according to the concerned parties.
The Syrian Institute for Insurance, which is responsible for 70 percent of all general insurance in Syria, provides a comprehensive insurance for cars – except in the case of natural disasters.
Ahmad Melhem, the director of the Insurance Institute, said in a statement that the compensation covers only the damages specified in the insurance policy.
Their institute is not a charity, Melhem added.
An owner of an insurance company said that insurance companies in Turkey have been charging insurance fees against earthquakes since 1999. The rebuilding process is thus the responsibility of those companies that have been making profits over the past 24 years.
Most countries are interested in natural disaster insurance, especially in earthquake-prone areas, such as Syria, he added.
On the other hand, riot insurance is available in Syria, as many properties were damaged during the ongoing war.
Massive losses
A financial journalist told North Press that there is not independent insurance law that covers natural disasters in Syria, and that over 99 insurance contracts do not cover such disasters.
He added that the insurance companies deal with such kinds of insurance coverage very carefully, due to high costs that may yield billions of dollars in losses.
The financial journalist expects such kinds of insurance to be launched in Syria soon since, according to companies, the country is at risk of witnessing devastating earthquakes every 250 or 300 years. Thus, companies will be able to cover insurance costs in case of any disasters.
He went further saying that the local insurance market relies on products promising large profits with limited liability.