APA Insurance pays Sh500m for JKIA fire

APA Group CEO Ashok Shah (L) and APA Chairman John Simba (R) at the Kenya Airport Authority’s offices where APA Insurance paid Ksh 500 million to Kenya Airports Authority (KAA) as part of the claim settlement following the August 7 fire which extensively destroyed the International arrivals terminal at Jomo Kenyatta International Airport (JKIA). December 2, 2013 Photo/DIANA NGILA   NATION MEDIA GROUP

By WANGUI MAINA

In Summary

• APA Insurance on Monday paid out Sh500 million to Kenya Airports Authority as part of the claim settlement following the fire that gutted down the International Arrivals at JKIA in August
• This is an interim payment that is expected to help KAA pay some of the costs incurred so far and start the redesign project following the condemnation of the building, which will be brought down
• The payment was made following a progressive loss adjustment exercise that is expected to quantify the actual loss suffered

APA Insurance on Monday paid out Sh500 million to Kenya Airports Authority as part of the claim settlement following the fire that gutted down the International Arrivals at Jomo Kenyatta International Airport in August.

This is an interim payment that is expected to help KAA pay some of the costs incurred so far and start the redesign project following the condemnation of the building, which will be brought down.

The payment was made following a progressive loss adjustment exercise that is expected to quantify the actual loss suffered.

“This will help us meet the bills. Given the number of professionals and specialists involved in evaluating this claim and the extent of the damage, collating these independent findings will take time,” said KAA’s acting managing director Lucy Mbugua.

“We have therefore agreed on a part settlement that will be channelled towards finishing pending work in our new arrivals terminal.”

APA Insurance through their reinsurers: Swiss Re, Africa Re, Kenya Re, Zep Re and East Africa Re, consolidated the total amount to settle the loss according to the proportion of their treaty.

“When all the assessment and final workings are done we shall pay the balance,” said APA Insurance chairman John Simba, during the cheque handover.

In November APA compensated Micro-city Computers, the company contracted to put up CCTV cameras at JKIA, Sh19.9 million.

The company was one of the companies that faced major losses following the August 7 fire that brought the region’s largest airport to a standstill.

Micro-city computers had been awarded a Sh200 million contract earlier in the year to install CCTV cameras at the premises.

Investigations on the cause of the fire concluded it was due to an electrical fault.