DAMMAM, 7 February 2007 -- The Saudi government is considering the implementation of mandatory fire insurance, according to Sami Ezzat Al-Ali, executive president of the Saudi United Cooperative Insurance Co., and a leading figure in the Kingdom's insurance industry. He was delivering the keynote address at a conference organized by the Eastern Province Chamber of Commerce and Industry and said, "The implementation of mandatory insurance against accidental fires with third party responsibility would be a great relief when material and human losses resulting from such fires. Insurance would also lead to the highest degree of safety in all establishments regardless of their activities."
Muhammad Al-Amri, head of the industrial safety unit at the Industrial Development Fund and Abdullah Al-Sanie, deputy chairman of the industries' committee at the chamber were also at the conference.
Al-Ali said the Civil Defense Directorate and the National Committee for Insurance in the Council of Saudi Chamber of Commerce were making the necessary studies for the government's plan.
Pointing out that insurance companies in the Kingdom had to pay SR1.83 billion in damage on accidental fires in the period between 1995 and 2005, he said, "The proposed government scheme would also minimize the accident-related social problems and money-losses. Another advantage is that compulsory insurance coverage will take away the responsibility of the Civil Defense in guaranteeing the safety arrangements in industrial establishments." He added that it would also be a great relief for all the affected parties because the insurance companies would pay the damages. He said the establishments that would come under the compulsory insurance scheme include factories, commercial centers, administrative and office complexes, warehouses, fuel stations, gas selling outlets, laundries, hospitals and health centers.
By Faiz Al-Mazrouei
© Arab News 2007
