Insurers face major payout after inferno at Dhaka airport cargo village

Abdur Rahman Abir: A devastating fire that tore through the Cargo Village near Gate 8 of Hazrat Shahjalal International Airport is expected to lead to one of the largest insurance claim cases in the country’s history, industry officials have warned. The incident has raised alarm across the insurance, export and logistics sectors, with early estimates pointing to losses exceeding Tk 12,000 crore.

Importers face uncertain future as policies fail to cover fire losses

According to sources, several insurers have already begun receiving claims from clients whose export and import goods were destroyed or damaged. However, the claim assessment process remains stalled as airport authorities concerned have yet to permit surveyors entry into the affected area for inspection and verification.

An investigation by Insurance News BD, based on a review of 83 relevant insurance policies, found that nearly 70% were ‘Air All Risk’ and 30% were “Air Risk Only.’ According to the experts, under the country’s insurance law, ‘Air Risk Only’ coverage applies strictly from the point goods are loaded onto an aircraft until they are unloaded- meaning this policy does not cover fire losses occurring in warehouses. In contrast, ‘Air All Risk’ policy offers warehouse-to-warehouse protection, making them eligible for compensation once the surveys are complete.

The Exporters Association of Bangladesh (EAB) has warned that the incident could severely disrupt the country’s vital export operation, mainly in the readymade garment (RMG) sector, which accounts for more than 80% of national export. “The damages are massive and will inevitably delay shipment,” an EAB spokesperson said. “Such disruption could harm the country’s credibility with global buyers.”

The Bangladesh Insurance Association (BIA) has urged insurers to take swift, transparent and coordinated steps to settle claims promptly. “This fire poses a critical test for our industry,” said BIA President Sayeed Ahmed. “Timely and fair claim settlement will be necessary to maintain business confidence and stabilise the insurance sector.”

BIA urges insurance firms to act swiftly following airport cargo inferno

At Bangladesh General Insurance, 45 claims have been submitted so far. CEO Ahmed Saifuddin Chowdhury confirmed that 22 are under Air All Risk coverage and are thus payable, while 23 fall under Air Risk Only and are not eligible for fire compensation.

Sena Kalyan Insurance CEO Brig. Gen. (Retd.) Shafique Shamim reported 38 claims from nine clients, including 36 under All Risk coverage. “Our surveyors are ready, but we are awaiting clearance to access the site,” he said, underscoring the urgency of completing assessment to determine final liabilities.

Officials from Dhaka Insurance Limited and Peoples Insurance also confirmed receiving several claims, although some were later withdrawn after clients recovered undamaged goods.

Sadharan Bima Corporation General Manager Shah Alam clarified the difference between the two main policy types- All Risk policy provides full warehouse-to-warehouse protection, while Air Risk Only applies only from aircraft loading to unloading. Therefore, only those with All Risk or additional warehouse coverage will qualify for claim.