Myanma In­sur­ance to pay in­dem­ni­ties to Htoo Group

The Myanmar Times - - Business - CHAN MYA HTWE chan­myahtwe@mm­

THE fire in­ci­dent at Kan­daw­gyi Palace Ho­tel will be clas­si­fied as be­ing 100 per­cent burnt-down and in­dem­ni­ties will be given within this month, U Lwin Oo, deputy gen­eral man­ager from Myanma In­sur­ance, told The Myan­mar Times.

Yangon’s iconic Kan­daw­gyi Palace Ho­tel, owned by U Tayza’s Htoo Group, was de­stroyed by a fire in the early hours of Oc­to­ber 19, and it had bought in­sur­ance from Myanma In­sur­ance and pri­vate in­surer Aung Thisar Oo Co.

The Htoo Group, which owns Kan­daw­gyi Palace Ho­tel, has bought in­sur­ance worth al­most K1.5 bil­lion for the ho­tel. Two poli­cies worth K855 mil­lion and K75 mil­lion are from state-con­trolled Myanma In­sur­ance while one more pol­icy, worth K523 mil­lion, is from pri­vate in­surer Aung Thit­sar Oo Co.

Af­ter in­spec­tion, it was found that the build­ings for which in­sur­ance was bought from Myanma In­sur­ance had been com­pletely burnt down while those un­der in­sur­ance cover of Aung Thit­sar Oo Co. had been par­tially af­fected from the fire, ac­cord­ing to U Lwin Oo.

There­fore, Htoo Group will be en­ti­tled to in­dem­ni­ties from Myanma In­sur­ance and they will not claim com­pen­sa­tion from Aung Thit­sar Oo Co.

As the build­ings in­sured by Myanma In­sur­ance had been al­ready spec­i­fied as be­ing wholly burnt, in­dem­ni­ties will be paid as soon as pos­si­ble af­ter cal­cu­la­tions, U Lwin Oo said.

“The ho­tel has been clas­si­fied as 100pc dam­aged. The build­ing can no longer be used and it must be de­stroyed. How­ever, the left­over from fire will have to be ap­praised for their value,” he said.

Burnt-down big teak pil­lars are use­less but rem­nants like nails, nuts, bolts and bro­ken bricks can be sold and value has to be cal­cu­lated and de­ducted from in­dem­ni­ties, one of­fi­cial from fire and en­gi­neer­ing, the in­sur­ance sec­tion said.

“No claim bonus will not be en­ti­tled if dam­ages are claimed for dis­tant par­tial burn­ing of the build­ing. No claim bonus is a 25pc dis­count on cur­rent-year pre­mium. If they ask for small amount of main­te­nance, they can­not get that bonus,” U Lwin Oo said re­gard­ing in­sur­ance at Aung Thit­sar Oo Co.

At present, en­gi­neers from Myanma in­sur­ance and Htoo Group are work­ing on cal­cu­lat­ing the value of re­main­ing prop­er­ties af­ter the fire and it will be fol­lowed by a ne­go­ti­a­tion meet­ing and then ex­act amount of in­dem­ni­ties can be known, he con­tin­ued.

It is pos­si­ble to know the amount in a week’s time and once the amount is spec­i­fied, pay­ment will shortly be made, he added.

With re­gards to in­sur­ance poli­cies, some are un­der U Tayza’s name and some un­der the ho­tel’s.

Kan­daw­gyi Palace Ho­tel is a high­end ho­tel which was built mostly with teak wood and was dec­o­rated with many Myan­mar tra­di­tional hand­i­crafts. It took fire­fight­ers more than three hours to ex­tin­guish the fire at the ho­tel.

It is the largest fire dis­as­ter in­volv­ing a ho­tel in the 60 years for which Myanma In­sur­ance has been in busi­ness. Prior to the Kan­daw­gyi Palace Ho­tel fire, only small-scale fires in­volv­ing ma­chiner­ies took place in the hospi­tal­ity build­ings, U Lwin Oo said.

The Htoo Group plans to re­con­struct the Kan­daw­gyi Palace ho­tel.

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