How to save company from flood? - Insurance companies, banks and the state provides funds for companies which suffered floods consequences

At the flooded territories in Serbia, there are some 10.000 companies and some 30.000 entrepreneurs. This refers also to towns and municipalities from the Kolubara, Macva and Morava regions as well as from Obrenovac, Jagodina,Paracin and Cuprijc, the Minister of Economy, Dusan Vujovic said.

- All these companies are equally endangered. Production was halted in some of them while in some companies water did not cause significant material damage but due to difficult transport of raw and production material, the production process is more difficult –Vujovic said.

While the Government is considering the international institutions providing help and funds could provide us loans, insurance companies have already started receiving damage compensation requests.

Still, if we take into an account the fact that, according to some estimations, only 7% of firms is insured the number of those to who hope that everything will be like it used to be with regular insurance payment is very low.

The insurance companies expect that a number of users who will receive damage compensation will be known the moment the situation settles completely and when people recover.

Uniqua company says for eKapija that, based on available data and information on all policy insurance policies in damaged areas, they are able to see the scope of the expected damages. A more precise estimation on the damage at the property of their clients, as they say, is not possible to give since the claims have already started.

- We have so far received nearly300 damage compensation requests from Obrenovac,Svilajnac, Loznica, Paracin, Valjevo, Cacak, Gornji Milanovac, Pozega, Osecina, Lajkovac, Sabac, Nis, Lucani, Banja Koviljaca, for which we expect a minimal paid amount of one million euros– eKapija found out at Uniqa.

They added they expect that as of next week, when more conditions are fulfilled,i.e. as the citizen start return to their homes slowely, there will be much more damage compensation requests, both for the destroyed proprety and vehicles. Apart from that, they expect property, goods and company stocks damage compensation requests from the companies insured with them.

Yesterday, Wiener Stadtische insurance invited all citizens who suffered property damage (flats, houses, agricultural farms, motor vehicles) and who have property insurance policy – additional flood risk, floods and high waters aswell as a car insurance policy at that company to report to the insurance company as soon as possible so that the procedure when it comes to compensation requests procedure would start soon.

Banks offer moratoriums and favorable loans

In the meantime, banks also reacted. Firstly, majority of banks will freeze loan return for three to six months, both when it comes to citizens and companies which live and operate in flooded areas. During the period moratoriumis effective, neither installment nor the principal amount will be paid.

Intesa, Raiffeisen and UniCredit banks will enable convenient terms in loan payments to citizens and companies which suffered damage so that they would help them overcome the situation.

This is the occasion for Tomislav Nikolic, the Prseident of Serbia, to meet tomorrow with the presidents of Executive boards at nine biggest banks in Serbia. As it was announced, tomorrow, he will discuss with the key people atbanks Intesa, AIK bank, Komercijalna bank, Hypo Alpe-Adria bank, Raiffeisenbank, UniCredit bank, Vojvodjanska banka, Societe Generale and Eurobank, sothat they could define the systematic solution for the help for people who lost their property in floods.

On Tuesday, May 20, Nikolic estimated that banks should provide loans with a minimal interest rate of interest rate-free which would fund renovation and construction of new houses as well as renovation of cattle fund for rural households.

Banks in Serbia say they are already preparing exemptions for citizens and companies suffering floods consequences and that the Association of banks of Serbia should provide a recommendation on this.

Ministry and government will support economy

When asked whether flood consequences will affect implementation of the economic measures package which the Prime Minister, Aleksandar Vucic, presented to the public, the Minister of Economy, Dusan Vujovic, said that that the Ministry of Economy, as well as the entire Government, will put maximal efforts to remove floods consequences and fix the damage.

After that we will continue implementing all the plans the government previously adopted, the minister added.

J.DJ.