The number of shops in Egypt which have caught fire has increased recently, causing huge financial losses to the shopowners.
The latest of these fires was the one that occurred earlier this month in the Al-Muski area in Attaba, near the centre of Cairo. 10 fire engines rushed to the scene to put out the huge blaze which killed at least five people.
Mr Walid Sayed Mustafa, an insurance consultant, told Amwal Alghad that the crowding of shops increases the speed of fires spreading rapidly. There is also failure in several areas to conduct fire safety inspections.
Mr Mohammed Al-Ghatrifi, an insurance broker, points out that although the new Unified Insurance Law stipulates that some lines of insurance are mandatory (eg. civil liability insurance for cinemas, theatres, and sports matches), it does not state the same for commercial establishments. Mr Mustafa added that if fire insurance was made compulsory for such shops, an organisation must be designated to supervise this.
Mr Mustafa said that whether or not insurers cover commercial establishments for fire depends on the underwriting policy of each insurance company. He added that some insurers avoid underwriting fire coverage for shops because the risk of fire may be high at such shops. This is particularly so for shops dealing in fabrics, textiles and leather.