Thousands Still Wait for Compensation Amid Delay of Beirut Port Blast Investigations

The damaged Wardieh hospital is pictured in the aftermath of the explosion earlier this month in Lebanon's capital city. (Photo by STR/AFP via Getty Images)

Five months on from the devastating Beirut port explosion that killed over 200 people, and injured thousands more, many claimants inquire about the fate of compensations they expect to receive from insurance companies pending the release of an official report on the cause and nature of the blast.

“Around 95 percent of insurance contracts stipulate that insurance companies do not offer compensation to clients for damages caused by terrorist acts or wars,” the head of the Association of Insurance Companies in Lebanon (ACAL), Elie Tarabay, told Asharq Al-Awsat.

Therefore, he said, most clients would not be reimbursed if investigations prove that the Beirut port blast is the result of a terrorist act.

Tarabay explained that insurance companies are not shirking their responsibilities.

“During the past two months, those companies paid the largest portion of the damages for cars, health, and life,” he said.

Tarabay noted that the uncompensated part is related to damages inflicted on buildings, particularly those estimated at a cost exceeding $25,000.

“We expect money from global reinsurance companies, which are waiting for the result of investigations to identify the groups that should be compensated,” he said.

Tarabay indicated that 5,000 cars covered by insurance were damaged by the explosion, with losses worth $10 million.

“More than half of those car owners were already paid. Insurance companies are working to compensate the others without waiting for the result of investigations,” he said.

However, several car owners damaged by the explosion said the reimbursement was unfair.

“But, it’s better than nothing,” said Sanaa, who was recently paid 6 million L.L instead of 10 million L.L for her damaged car following months of delay.

Tarabay said insurance companies received more than 15,000 requests over losses estimated at around $1.1 billion.

A source at the Economy Minister told Asharq Al-Awsat that the Ministry is following up the compensation issue with insurance companies and is urging them to settle claims related to the 4 August Beirut Port blast for the most vulnerable insured clients, without waiting for the findings of the judicial investigation into the explosion.