CAIRO - The January 25 revolution has had an effect on insurance in Egypt, where insurance companies are having to pay out a lot of money in compensation to companies and individuals that have incurred losses in the wake of the violence. In these insecure times, more and more people are taking out insurance policies, which is also pushing the cost of insurance ever higher. Some companies are refusing to insure properties in Tahrir Square and the nearby Mohamed Mahmoud Street and Maspero, because so many buildings have been damaged there. They are also reluctant to insure vehicles. According to Ahmed Abul Enein, head of the Vehicles Section at Misr Insurance Company, Egyptians need to be made more aware of the importance of insurance, especially in the wake of the revolution. “But most Egyptian citizens are too poor to afford insurance,” he says, adding that car insurance companies are suffering huge losses because of the security vacuum and the riots. Wael Badran, manager of the Royal Insurance Company, told Al-Messa newspaper that many citizens are feeling scared, so they are now insuring their vehicles and other possessions, especially if they live in volatile areas. As well as increasing their prices, insurance companies are paying out less. For example, someone who's had his car insured for LE100,000 will now only get LE75,000 if it's stolen. “Public-and private-sector insurance companies have paid out nearly LE1 billion in compensation since the outbreak of the revolution,” adds Badran, stressing that the media should make citizens more aware of the need to insure their possessions. “I was happy that the State insured the judges during the elections for nearly LE1 million [about $165,000] each, but the governmental buildings recently damaged or destroyed by fire weren't insured. People should be told about insurance when they buy a car or a flat.” Ahmed Abdel-Aziz, a senior insurer for lorries, says that the insurance culture has changed since the revolution, with some companies issuing new insurance policies against the hazards of political violence. The number of ‘car jackings' and ‘lorry jackings' has increased drastically since the revolution. Insurance companies now insist that lorries to be insured must be equipped with GPS devices, so their location can be fixed by satellite. They also advise lorry owners to use their vehicles during daylight hours, while the driver should be accompanied by an armed assistant. “We've had a lot of co-operation about this,” he stresses.
