Insurance sustains small and medium enterprises

Insurance sustains small and medium enterprises



06/04/2017 0:00



Baghdad / Mustafa al - Hashemi
represents a small and medium enterprises the real development of the largest economies of the world axis and derives its durability from sober insurance cover which covers its exposure to any unexpected challenge to confuse her productivity or service, and thus ensure their support for the economy in general.
Highlights the insurance role of the small and medium enterprises by accelerating the return to work after exposure to natural hazards welling Owalsaakh or other incidents like fire and explosion or by negligence, on the assumption that any project can be exposed to damage and loss of physical possibility because of the dangers of nature, which requires the project owners rehabilitation to ensure the continuity of work in order to achieve economic feasibility of insurance on these projects.
International insurance expert lamp Kamal saw that Iraq need insurance for small and medium - sized enterprises, since the adoption of this type leads to a change in the reality of the economy, where the production process will activate a way that achieves the benefit of the economy and address the majority of economic problems.
He stressed the importance of having insurance on such projects by saying: If we assume provide security to cover the risk of not being able to repay the loans offered by banks, or from other sources, to the owners of small and medium - sized enterprises, will remain projects vulnerable to other hazards requires the concerned parties ( the bank and the owner of project) pay attention to them.
Kamal said the project owner may also exposed to legal liability to third parties arising from the activities of the project or its products or services.
He stressed that may result in such damages and losses possible loss of profits due to the project stopped working, and short or long duration of downtime will be depending on the size of the physical damage and the nature of the means of production used, though to be imported and are difficult to provide easily and quickly not available in the local market.
He explained that the project owner is facing the problem of financing the cost of repairing the physical damage and find a source to compensate for lost income due to the cessation of production (loss of profits).
To address this situation can be the owner of the project is financing these losses through operating income, indicating if the big loss, this income will not be enough, assuming there provided money can be allocated to fund some of the material loss and loss of profits.
He pointed out that the project owner can also borrow from the bank , but this loan may not be readily available to the fact that the owner of the project, which suffered heavy losses, will not be an attractive agent or loan terms are onerous and constitute an additional financial burden on it.
He continued Kamal here can insurance protection can play an important role in ensuring the success of the project and its sustainability through compensation for the owner of the project, under documentation specialized insurance, to finance the cost of repairing damages and compensation for loss of profits.
Kamal confirmed that compensation insurance makes it easier for entrepreneurs to continue to pay wages and expenses of fixed operating, indicating that the protection of these losses will be easier and more economical to the owner of the project that has allocated an annual budget for the purchase of insurance to protect against loss.
Kamal pointed out that when the loss arises is transferred the burden of funding to the insurance company that will provide protection (cash compensation) under document to secure physical assets of property for the project and attached to the document to secure the loss resulting from business interruption profits.
Kamal He concluded by stressing that the requirement of banks to loan applicants for the purposes of investment purchase appropriate insurance protection would be in its favor, indicating that this may be the inclusion of text in insurance policies on the banks interest in the benefits of these documents , as is in favor of the project, because the insurance company compensate for insured losses. As a requirement to secure the life of the owner of the project and a way to ensure that the entire loan or part of the value of the payment.


[You must be registered and logged in to see this link.]