GPI Holding insurance company has introduced an unprecedented insurance product. The company offers a natural disaster risks insurance package to vehicle owners free of charge.
The company held in the product’s presentation at the Tbilisi Zoo territory, one of the most damaged placed after the June 13 natural disaster.
Starting August 3 all vehicles will be insured as part of the natural disaster risks insurance package, GPI Holding risks management director Irakli Dvali noted.
According to the package terms, the insurance value is determined by the market value of a vehicle. The program covers the whole territory of Georgia and refers to private vehicles. The insurance policy is valid for a year. Beneficiaries are able to get registered until December 31, 2015. The package calls for insuring the following risks: flood, landslip, heavy snow, earthquake and hurricane.
“I believe it is our social responsibility to develop and spread insurance mechanisms all over the country to bolster the establishment of risks management mechanisms and minimize financial losses of our beneficiaries. Therefore, we have introduced free natural disaster risks insurance package and created sensible precedent to guarantee financial protection of thousands of our citizens during natural disasters.
The project is to thoroughly meet the existing challenges and spread insurance protection mechanisms against natural disaster outcomes.
The international experience suggests the private property should be insured and only the state sector should not bear this burden. One the one hand, we want to create protected financial future to vehicle owners and, on the other hand, we want to take further steps for the insurance culture enhancement.
The June 13 natural disaster outcomes have led us to creating this product. We should establish efficient mechanisms for risks management and financial losses prevention and this is the major challenge before our country today.
“Insurance mechanisms are one of the important parts in this plan and we rely on the experience of developed economies in this respect. We have seen the state sector and taxpayers have to bear the burden of compensation of losses. The insurance industry is a support of social and economic systems in the developed countries”, Irakli Dvali said.
GPI Holding has introduced a genuine social responsibility project in the best traditions of the developed countries, Kakha Maghradze, a senior partner for GEPRA consulting company, a founder and board member of the Social Responsibility Club, said.
“The company has no legislative obligations, but the company has decided to response to the public needs and challenges anyway. As a result, GPI will thoroughly insure natural disaster risks of vehicle owners and ensure their stable financial environment. The idea in itself is of crucial importance in terms of social responsibility and I hope other insurance companies will also take similar bold decisions”.