Before the next fire outbreak, insure your property and workers

By Mariam Nalunkuuma 

“Crest Foam factory and workers were insured, insurance company providing cover is on ground and preparing to pay for the incurred losses”

On Monday March 9, 2015, there was mayhem at Crest Foam Mattress factory along Ntinda Stretcher Road, in Kampala, where massive property was destroyed and six workers confirmed dead, following a fire outbreak.

The fire outbreak at Crest Foam reminds many of the 20 school girls who were burnt to death after a dormitory at Budo Junior School caught fire in April 2008, seven years ago. On Tuesday, there were similar reports of miles of Busitema forest in eastern Uganda, burning down from the scorching flames.  

As wildfires engulf sugar, maize, pine, eucalyptus plantations among others during this dry season, the issue of fires comes again to the fore front of people’s minds. Fire is a commonplace occurrence which does not mean that because it has gutted ones’ business or individual today, it is destined to happen to you tomorrow. Uncertainty is part of our lives but we hardly realize the importance of taking precaution till there is massive destruction of property and loss of lives.

We are all aware that whenever there is a fire outbreak, massive property destruction and huge financial losses are incurred. The costs of repairing, rebuilding and or replacing the lost possession are usually very high. And that’s where we need to draw lessons from. A fire outbreak can be at a factory; in office; at home and at all other levels, which therefore calls for the need to put in place safety nets at workplaces and home.

One safe way of providing security to property against fire is taking out a fire insurance policy to help cover any financial loss to be incurred. Such a policy gives financial security by providing full coverage on lost, damaged or destroyed property back on track and to be fully restored.

In the case of Crest Foam, it is good to learn that the factory had been insured. In fact the insurer is on ground, a loss adjuster and loss assessor have been appointed to assess the loss incurred and in the shortest time possible, Crest Foam factory will be compensated for the losses; restored and back into operation, thus enjoying the peace of mind – insurance.

Fire insurance policies approved by the Insurance Regulatory Authority of Uganda are available on the insurance market and are designed to cover the costs of replacement, reconstruction and repairs. Others go beyond to cover nearby structures and personal property when damaged.

The tragedy at Crest Foam factory also led to workers losing their lives. We sympathise with the families of the deceased. But there are lessons for us to pick from there. It is a mandatory requirement that all employers provide Worker’s Compensation Insurance cover to their workers. This is by law (the Worker’s Compensation Act) and aims at protecting workers and ensuring that in the event that they (the workers) get any kind of injury at work, they receive appropriate medical care and compensation.

In the event that the worker dies as a result of work related injuries or dies on duty, as it manifest in the Crest Foam circumstances, the members of the deceased are ordinarily eligible to benefit sixty (60) months (five years) earnings of the deceased. The workers at Crest Foam had also been insured and will receive compensation.

So before we experience another fire outbreak, it is advisable that employers adhere to the mandatory cover (Workers Compensation Insurance cover) for the workers to enable their dependents live a decent life.

Employers further need to create workable fire escape routes, and teach workers how to use fire extinguishers at their premises. Workers are encouraged to take the initiative to establish the escape routes at their workplaces to enable them easily escape just in case they are confronted by fire at the premises.

As we grief the lost lives in Crest Foam factory, before we experience another fire outbreak, we need safety measures and precautions like insuring our properties and lives, to have a complete peace of mind given that you will be paid!

The writer is a communications officer with Insurance Regulatory Authority of Uganda