, NAIROBI, Kenya, Jan 9 – Mayfair Insurance Company has made a Sh600 million settlement to regional retailer Nakumatt Holdings for losses suffered at its branch at the Westgate Mall in September 2013.
This is the second settlement by Mayfair Insurance under Nakumatt’s terrorism cover, bringing the total settlement made so far in respect of this claim to Sh1bn.
Mayfair Insurance Company Managing Director Tushar Shah says the settlement was part payment for loss of stock and furniture fitting and fixtures as well as business interruption.
“What we have fully settled is for the stocks and part of the furniture fittings and fixtures and continue making more settlements as time proceeds until the whole settlement estimated at Sh2 billion is made,” he said.
Shah says uptake of terrorism cover has been on the rise following terrorist attacks that occurred in 2013.
He says uptake of terrorism cover has risen to 150 percent in 2013 compared to 2012.
“The uptake of the terrorism cover is hugely taken up by car and property owners of people living in Nairobi and Mombasa; we have seen a continuous increase,” he said.
He says the trends of the attacks is likely to increase the uptake even more in the year 2014 pointing out that price hike on premiums is expected if the current terrorism trends becomes habitual.
On his part, Nakumatt Holdings Managing Director Atoll Shah says the second payout will boost Nakumatt’s recovery from losses suffered as a result of the terror attack estimated at over Sh2 billion.
Shah says the recovery will take place in two phases with the front part of the building up and running in six months.
“For Westgate to get back on its feet, there are two phases that will come up, one is the front part of the building which should be up and running in the next six months with a small Nakumatt store within that first phase while the second phase where a bigger chunk of Nakumatt was burned will be ready in the next two years,” he said.
He said that they will be covered at least 60 percent of the loss incurred.
The Regional Retailer Nakumatt plans to invest about Sh2 billion to open 12 new branches in the region in 2014.
Nakumatt holdings Business Development Manager Neel Shah says the new branches will be of different sizes and are expected to increase the retailer’s turnover by 10 percent.