Cargo Village Fire: Insurance Coverage Only 2 Million Taka Despite 12 Billion Taka Losses

A recent fire at the Cargo Village of Hazrat Shahjalal International Airport caused massive destruction, but officials have revealed that the facility’s insurance coverage is only 2 million taka. Consequently, the compensation that the Civil Aviation Authority of Bangladesh (CAAB), which owns and operates the Cargo Village, can claim is limited to this amount.

Insurance for Import and Export Goods
Officials noted that imported goods destroyed in the fire are usually insured by importers through foreign insurance companies in the supplier’s country. For exported goods, Bangladesh does not mandate insurance. Therefore, claims for the destroyed imported items at Shahjalal Cargo Village will need to be processed via international insurers.

Authorities’ Statement and IDRA’s Role
The Insurance Development and Regulatory Authority (IDRA) has said it will soon contact local insurance companies to verify whether any policies were issued for the Cargo Village and determine the total claim amounts. IDRA will also direct insurers to settle all valid claims promptly.

Insights from General Insurance Corporation
S.M. Shah Alam, General Manager of the state-owned General Insurance Corporation (GIC), confirmed that only a small section of the Cargo Village was insured, with coverage of just 2 million taka. He added that normally, fire insurance requires an assessment of the facility’s safety measures. However, in Bangladesh, no legal requirement exists for such inspections, and GIC had not evaluated CAAB’s warehouse safety before issuing the policy.

Scale of Losses
At a press briefing, Mohammad Hatem, President of the Exporters Association of Bangladesh (EAB), stated that exporters incurred losses of nearly 12 billion taka due to the fire. Zakir Hossain, General Secretary of the Bangladesh Pharmaceutical Industry Association, reported that raw materials worth 200 million taka from 32 pharmaceutical companies were completely destroyed.

Operations of Cargo Village
The Cargo Village acts as an integrated hub for import and export management. It handles loading and unloading, inspection, packaging, storage, and customs clearance. Perishable goods like fruits and vegetables are released within 24–48 hours, while ready-made garments are generally exported within 2–3 days.