ADDIS ABABA – Addis Ababa Light and the Ethiopian Cross Boarder Railway infrastructure have no insurance coverage to date. This is due to the absence of insurance policy setting and lack of coverage capacity of the local insurance companies including the largest government Insurance Company, disclosed the Ethiopian Rail Way Corporation (ERC).
The ERC General Manager Henok Bogale said making the railway insured needs policy setting and building the holding capacity of the local insurance companies.
As a result, the railway infrastructure has not insurance coverage and things are on the hands of the ERC if a natural disaster occurs, according to Henok.
‘‘All the materials used for the construction of the railway brought from abroad. Our local insurance companies are not able to pay for such huge mega projects. For such and other related conditions the companies have to create the reinsurers global insurance company linkage,’’ the general manager noted.
He pointed out that some insurance organizations are going in fair way to get foreign reinsurer organizations and others far from it. ‘‘But ERC has the responsibility to discuss, monitor the reinsurer involves talented insurance agents.’’
Besides, the corporation has made lots of discussion with government and associational local insurance companies to set policy and to create affordable conditions for them up to getting reinsured by foreign large experienced and abled reinsurer organizations, Henok added.
He further explained that currently, the corporation is insuring the transiting materials, on foot traveler by rail and the beneficiary customers on transportation system has used from the coverage of the third party entered insurance coverage for those organs that use the railway transportation to file safe the customers.
‘‘For the cross boarder railway, ERC has also entered insurance for the transiting car goes as too the beneficiary in similar third party coverage. In a parallel fashion, for the cross boarder rail way infrastructure has no insurance due to similar problems with that of Addis Ababa Light Railway,’’ the General Manager indicated.
In addition to this, Henok stated that making the insured railway needs its own agreement with local and foreign insurance companies and ERC has been working hands in glove with those companies to get the agreement and build the capacity of them up to reinsuring operation capacity building and practicing.
Meanwhile, insurance policy has been creating and putting the premium fee and coverage range for the companies and the insuring infrastructure and this includes awareness creation for the companies and other concerned organs, as to him.
Henok also stressed that insuring needs identifying the options depending on what things the ERC shall prefer to enter and to buy the insurance premium and when is the pre analysis question presented to the corporation.
The insuring process depends on the preference and calculating the risk of on self, and rescheduling to the other parties. ERC will have to enter different parts of the systems and facilitate affordable conditions to the corporation, the General Manager concluded.
The Ethiopian Herald October 20/2019
BY MUSSA MUHAMMED