English | دری

Fire insurance coverage for companies is mandatory-Afghan Ministry of Finance

in Afghan Business

Fire insurance coverage for companies is mandatory-Afghan Ministry of Finance

fire insuranceThe Ministry of Finance has announced that businesses and foreign organizations without fire insurance coverage would not receive a license to operate in Afghanistan.

Fire insurance has been made mandatory on all local and foreign companies and businesses.

“All organizations, companies, health centers, business centers and media centers must start seeking fire insurance coverage at the beginning of the New Year, 1392,” said Fazul Bari Mumtaz, Head of the Insurance Department at the Ministry of Finance.

Mr. Mumtaz said the Ministry has declared fire insurance mandatory in order to avoid possible damages caused by fire, adding that failure to comply with the decision would result in a 5mn AFN fine.

Not satisfied with the past activities of the insurance department, a number of Herat industrialists and traders objected to the decision.

According to Herat businessmen, the insurance department has previously failed to pay their claims despite receipt of the insurance premium

“Not as long as the government takes important steps towards improving their activities, no company will insure themselves against fire,” said Hamidullah Khadem, Head of the Herat’s Industrialists Union.

“The decision is merely a way for the government to generate more revenue from the traders,” said Haji Bismillah Siddiqi, Head of Herat’s Liquid Gas Union.

Following several fire incidents that inflicted millions of dollars of losses in various provinces, the Council of Ministers settled on making fire insurance coverage compulsory on all companies and businesses.

Currently, there are more than 400 manufacturing plants operating in Afghanistan. More than four of them were gutted by fire this year.

Insurance department officials of Herat had discussions and consultations with regards to the decision of compulsory fire insurance coverage at a conference on fire insurance procedures in the province.



Related Articles

Ministry of Higher Education to solve financial problems of Afghan students in Malaysia

The Afghan government finally has good news to the Afghan students studying in Malaysia. Ministry of Higher Education said they

First RECCA Ambassadorial Coordination Meeting of 2018 held in Kabul

Afghanistan’s Ministry of Foreign Affairs hosted the first RECCA Ambassadorial Coordination Meeting of 2018 today in Kabul. The meeting was

Afghanistan shines in Netherland’s international exhibition

An international exhibition of handicrafts and precious gems, attended by participants from 30 different nations, was held in Netherlands. Afghanistan’s

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.