Janashakthi settles mega claim from Udapussellawa Plantations

Janashakthi Insurance Co. Ltd (JICL) this week settled a 51 million-rupee fire and marine claim from Udapussellawa Plantations PLC. JICL together with Finlay Insurance (Brokers) Ltd, had a comprehensive risk management plan in place for the Udapussellawa factories covering all their buildings, machinery, electrical equipments, office equipments, furniture and utensils, packing materials and other consumables. A separate ‘Marine Annual Goods-in-Transit Open Cover Policy’ was also in place for the financial protection of its tea, rubber and coconut goods.

The four storied Madulkelle Tea Factory belonging to Udapussellawa Plantations in the Kandy district suffered heavy damages as a result of a sudden fire that broke out within the factory premises while production was underway. More than 35 workers and officers who were in the factory when the fire took place escaped unhurt while damage control by employees was very difficult due to the extreme heat and the rapid spread of the fire.

There was complete destruction of machinery used by the company for the manufacture of CTC tea. With 90% of the building being completely destroyed, reconstruction was ruled out and it was therefore considered a total loss.

Due to the heavy damage, the Madulkelle factory is currently not in a position to produce tea, while the reinstatement period could be between seven months to one year. “A close collaboration between the insurer and the client, in this case facilitated by the broker, is absolutely essential in business interruption insurance.

The mutual understanding and trust between Janashakthi Insurance and Udapussellawa Plantations PLC have ensured the rapid collection of business data for a speedy and efficient settlement of the consequential loss claim as well,” said Prakash Schaffter, CEO / Managing Director of Janashakthi Insurance Co. Ltd.