BGMEA Urges Govt for Swift Insurance Claims After HSIA Cargo Fire

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has formally requested the government, through the Financial Institutions Division (FID), to intervene and ensure the swift settlement and payment of insurance claims for garment factories affected by the October 18 devastating fire at the import cargo village of Hazrat Shahjalal International Airport (HSIA).

Significant Losses: The fire destroyed a substantial quantity of imported raw materials for garment factories, causing major financial losses and putting high-value export orders at risk. The total immediate loss to the sector exceeds US$8.0 million.

Urgent Need for Funds: Affected factories urgently need the insurance funds to re-import materials, complete pending export shipments (as foreign buyers are withholding payment until fulfillment), recover from the crisis, and pay workers' wages and allowances.

Government Response: The FID has acknowledged the BGMEA's application and has instructed the concerned regulator, IDRA, to take necessary action.

Insurance Delay Concerns: Insurance officials estimate that assessing and processing claims could take one to one-and-a-half months, a delay exacerbated by the urgent need for working capital.

Investigation: The government has launched a full investigation into the incident and sought assistance from international experts.