By 
Insurers have proposed consideration of mandatory uptake of fire insurance by all businesses and urban houses in an effort to reduce the economic impact caused by fire occurrences.
This proposal was made by the Insurers Association of Zambia (IAZ) in its submission for the 2024 national budget framework.
Its Executive Director, Nkaka Mwashika, in his submission on Wednesday in Lusaka, said compulsory fire insurance would ensure that businesses could return to operating as normal in the shortest possible time.
He pointed out that this would in turn reduce the economic impact of fire.
“We propose that government should consider fire insurance for business premises compulsory, the country has been grappling with fires for a long time and we have seen that once there is fire, business close out and lives are impacted negatively, recovery from fire losses are virtually nil in the absence of insurance.
“Society pays a huge cost on losses caused by fires. For businesses, there is loss of capital and sometimes business closure. It may also mean loss of employment and poverty. This puts pressure on well-wishers and government to provide disaster relief,” Mwashika said.
He observed that most businesses were unable to recover once they recorded a fire incident as they were not insured.
Mwashika believed that making fire insurance mandatory for businesses and their premises would be one of the ways to revive them once they were affected.
“We have seen that without fire insurance to secure their businesses and the premises which they operate. These businesses move from performing well to being brought to an abrupt end and most of them find themselves in abject poverty.
“So we want to come in and help government to rebuild these businesses, reinstate the entrepreneurs quickly so that after fire they should be able to get back to where they were before. This can only be done if a compulsory law is deliberately made to ensure that fire is always insured,” he said.
Speaking earlier, Finance and National Planning Minister, Situmbeko Musokotwane, encouraged the private sector and other participants to be open minded and to contribute to the discussions effectively.
Musokotwane stressed that it was obvious that aspirations of the government could not be achieved without the strategic role that the private sector played in the economy.
“Therefore, to achieve sustainable and inclusive growth for increased economic opportunities, government’s assurance of maintaining a conducive business environment will be pivotal to sustaining a thriving private sector led economy,” he said.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments