Most importers may not receive compensation for HSIA cargo fire losses
Business Report :
The recent fire at the import-cargo village of Hazrat Shahjalal International Airport (HSIA) has left many importers facing significant financial losses, as most consignments were insured under ‘Air Risk Only’ policies, which cover only specific in-flight incidents, including air crashes, hijacking, forced landings, and collisions.
Experts say that goods stored at the cargo village or damaged during handling are not covered under this limited policy, meaning that a majority of affected importers will not receive any compensation. In contrast, ‘Air All Risks’ insurance protects goods during transit and for 30 days after landing, including while in storage, offering a much broader safety net.
A visit to the offices of C&F agents near the HSIA cargo village revealed that out of 15 insurance documents reviewed, only three consignments had Air All Risks coverage, while the rest had the cheaper Air Risk Only insurance. Insurance executives said the premium difference is significant, with export-oriented industries paying 0.14 percent for Air Risk Only versus 0.54 percent for Air All Risks, and local industries paying 0.27 percent versus 0.81 percent.
Md. Imam Shaheen, Managing Director of Asia Insurance PLC, explained that those who opted for full coverage will receive compensation, while those who chose the limited policy deliberately to save costs will bear the losses themselves. Similarly, Md. Khaled Mamun, CEO of Reliance Insurance PLC, stated that corporate clients usually take full coverage, but many smaller importers fail to do so. Reliance Insurance has already received around 80 damage claims worth approximately Tk250 million related to the fire.
Industry insiders say that importers often focus on arranging bank financing or letters of credit and overlook comprehensive insurance, exposing themselves to risk during storage or transit. Insurance companies encourage clients to take Air All Risks coverage.
The fire has reignited debates over risk management and the need for better awareness among importers regarding insurance coverage. Experts recommend that importers carefully review policy terms and consider full coverage, especially when storing high-value or sensitive goods at airports or ports, to avoid significant losses in case of unforeseen incidents. Insurers said that valid claims will be settled only after detailed surveys are completed, and affected businesses are being urged to verify coverage before submitting claims.