Oman Insurance Company's seminar highlights industry moves towards making liability insurance mandatory

Dubai, November 1, 2007: Dubai's drive to become one of the biggest logistics hubs of the world needs to be supported by a commitment to adopting international best practices, of which insurance forms a critical element, experts at a Dubai seminar highlighted today.

According to the experts, while Dubai has scored full marks for its projects like the Dubai Logistics City, Jafza and other free zones, the fact that a large majority of freight forwarders do not offer professional liability insurance could give Dubai a bad name. The industry, led by the National Association of Freight and Logistics (NAFL), is pushing for mandatory liability insurance for freight forwarders, and the government is in favour of such legislation, on the lines of other successful countries.

Welcoming the participants, H.E. Matar Humaid Al Tayer, Chairman of Oman Insurance Company, underlined the importance of adopting best practices in freight and logistics, as Dubai continues to witness phenomenal trans-shipments of cargo and freight from all over the world.

"Freight forwarders' liability insurance is a key factor that will boost the confidence of the industry and assure customers that their interests are well protected," H.E. Matar Al Tayer said. "Freight forwarders' liability is a complex issue due to its interantional nature involving various laws. Oman Insurance Company has taken the lead in mobilising the freight forwarding community to discuss critical issues involving this important issue."

Delivering the keynote address, Ali Ibrahim Mohammed, Deputy Director General, Executive Affairs, Department of Economic Development, said the signing of a Memorandum of Understanding (MOU) between DED and NAFL last year, marked the first step towards 'establishing a system to ensure competency, accountability and professional liability insurance for the freight forwarding and transport logistics industry in Dubai.'

"This is part of our commitment to establishing the emirate's logistics industry as a benchmark of quality and excellence. We call upon our partners in both the private and public sectors to join us and other government departments in our drive toward higher quality through innovation. We seek to raise the standards of those working in the field without any limit," Ali Ibrahim added.

Captain Mansoor Ghafoor, President of NAFL, said the 14-year-old association has been giving a lot of thought to the issue of professional accountability and liability insurance, and recalled the signing of an MOU between NAFL and Dubai Department of Economic Development last year, to establish a system to achieve these objectives, with the objective of positioning Dubai as a centre of excellence.

"Our aim is to assess competency levels and introduce vocational training to enhance accountability of licence holders, besides applying professional insurance schemes with internationally accepted standards," Captain Mansoor said.

Mr. Alan E. Wilkins, partner, Transport and Logistics Underwriter, Watkins Syndicate, said taking insurance cover was either commercial prudence to protect against large or multiple claims that could bankrupt or seriously impair the company's ability to trade, or a commercial need, a pressure exerted by customers before entrusting their cargo to them. The growth of Quality Assurance in the global forwarding community, also dictates that agents will only work with another who has similar insurance protection, he added.                             

Mr. Christopher Mills, partner, Dispute Resolution, Clyde and Co. Legal Consultants highlighted the legal side of freight forwarding and the various international conventions applicable to the industry, through case studies, as well as the problems associated with local and international freight forwarding.

Mr. Wing Hoong Ho, from Asia Capital Re, presented the benefits of group insurance schemes and highlighted the various options available for freight forwarders to safeguard their interests as well as those of customers.

Mr. Abdul Muttalib Mustafa, General Manager, Oman Insurance company, said the seminar represented a strong initiative aimed at raising awareness about protecting the image of Dubai by following global best practices in tracking, packing, safety and insurance, and urged the freight forwarders' community to work jointly towards achieving excellence.

The seminar highlighted cases of breakage, delayed deliveries and wrong deliveries, leading to litigations involving large sums of money. The seminar presented several success stories in this field, specially the Singapore model that has made the tiny city state an undisputed logistics leader.

Oman Insurance Company, the biggest insurance company in UAE, organised the seminar as part of its corporate social responsibility and in continuation of a series of programs to raise awareness of issues of interest to the community and industry. The last one was on 'fire hazards at high-rise construction sites', which raised vital issues in safety.

-Ends-

About Oman Insurance Company
Oman Insurance continues to maintain the leadership position in its field. Winner of several awards and certifications, Oman Insurance Company's rating was recently upgraded to A- by Standard & Poors, providing the proverbial icing on the cake. In 2006 Middle East Insurance awards, it won General Insurer of the Year, Training of the Year and Life/Medical Insurer of the Year awards.

Oman Insurance Company provides insurance coverage to some of the biggest players in Dubai, including Emaar (including Burj Dubai), Nakheel (including Palm Jebel Ali and Dubai Waterfront), Ministry of Defence, Ministry of Finance, and a host of high profile companies.

OIC's total assets are in access of Dh3.78 billion and paid up capital Dh282 million. The company recorded a net profit of Dh166 million for half year ended June 30, 2007. Technical profits for the half year stood at Dh76 million as against Dh56 million for the precious year, showing an increase of 36 per cent.

Issued on behalf of Oman Insurance Company, Dubai,
by PR Squad, P.O. Box 31967,
Dubai,
UAE.
Phone: +9714 3903664,
Fax: +9714 3515049.
 
PR contacts:
Ashok Kumar:
Tel: +971 50 640 2560

Anthony D'Silva.
Tel. +971 50 4571624

© Press Release 2007