Insurance companies will not compensate for property damage in Mansoura blast

Ahram Online, Tuesday 24 Dec 2013

Egyptian insurance companies offer a special policy for political violence

A damaged car is seen after an explosion near a security building in Egypt's Nile Delta city of Mansoura in Dakahlyia province, about 120 km (75 miles) northeast of Cairo December 24, 2013 (Photo: Reuters)

Owners of cars and shops damaged by the bomb explosion which killed 13 people in Mansoura early on Tuesday morning will not necessarily be compensated by insurance companies, even if they have policies.

Head of the Insurance Federation of Egypt, Abdel-Raouf Kotb, told Al-Ahram Arabic website that victims of the Mansoura explosion need to have a specific insurance policy against political violence to receive compensation.  

Insurance policies against political violence appeared after the 2011 revolution as clashes related to demonstrations increased.

After the ouster of Mohamed Morsi in July, several bomb attacks on security targets have taken place.  

Kotb said the high price of political insurance policies in Egypt is a result of the elevated cost Egyptian companies pay to international reinsurance companies setting prices according to national security levels.

The blast at Mansoura security directorate, which killed 13 people and injured 134, appears to be the worst terrorist attack on a government site since the ouster of Morsi in July.

The governor of Daqahliya province, where Mansoura is located, said the governorate will compensate the injured with payments of LE4,000 (approx. $570) each while families of the deceased will receive LE10,000 (approx. $1,400).

No official source mentioned compensation for property damage.

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