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Economy

No compensation to Kumasi gas fire victims

The 135 people who were injured in the Kumasi gas explosion disaster may not enjoy any compensation because the gas filling station failed to take up a public liability insurance cover. ENGAS Company Limited, owners of the liquefied petroleum gas, (LPG) filling station only took up fire, goods-in-transit, and motor insurance; and these policies do not allow individuals to be compensated in an event of a fire outbreak, or the collapse of the building, as in public liability insurance. In the evening of Friday September 21, 2007, an LPG tanker offloading LPG at the ENGAS LPG retail outlet at Asokwa, a suburb of Kumasi exploded due to a leakage, causing a fire outbreak which led to the destruction of property, and severe injuries to more than 135 people. Some of the companies, which also had their facilities destroyed, include Mckeown Complex, Texas de Hotel and Hotel de Georgia, Millennium Plaza; Dove FM, and Spirit FM, as well as Minkah & Premo Co. B&FT learnt that the nation's biggest insurer, State Insurance Company Limited (SIC) of Ghana provided three different insurance covers against fire, goods-in-transit, and motor vehicles, however, ENGAS failed to take up insurance cover against public liability. Some insurance experts told B&FT that since ENGAS did not insure the property against public liability, it would be almost impossible for any insurance company to pay claims to victims, to compensate them. "It is about time property owners were compelled to take public liability policies so that in the event of an accident, be it fire or collapse of a building, the victims involved are adequately compensated,” said one expert. Officials of State Insurance Company Ltd., (SIC) are currently undertaking a survey to assess the extent of damage, after which the total loss can be established. B&FT further learnt that the other buildings that were destroyed in the process would receive claims from their respective insurers. When B&FT visited the affected area on Saturday, SIC officials and fire officers were seen assessing the extent of damage caused on the premises of ENGAS. The National Disaster Management Organization (NADMO) and Kumasi Metropolitan Assembly officials have hinted that they are working out compensation packages for the victims. The incident has raised eyebrows on how permits are granted to LPG retail outlets in residential areas in the metropolis. KMA officials have, however, maintained that the gas operating company, the LPG retail outlets such as ENGAS is located in an industrial area saying, "the KMA will not act in anyway that will put the lives of the residents at risk." Source: B&FT

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.