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Government to Compel Builders to have Insurance
Date Added: August 02, 2011 06:33:28 AM
Author: Cristinamerry
Category: Business & Economy: Finance and Investment

Legislation has build a document that will have to be satisfied by the consultants and the builders to obtain Professional Indemnity Insurance (PI) depending on the investment on building a project and the kind of infrastructure that will be built. The drafted document will be disclosed to all for discussion among shareholders, builders and consultants before this rule is put into action. An executive at the Ministry of Urban Development and Construction (MoUDC) told that regulation is necessary as this will make the contractors and consultants more responsible. This will benefit the employees who get injured while construction works and various accidents occurring due to design and architectural faults. Professional Indemnity Insurance (PI) is a debt insurance policy which will help you as an individual and the organization as a whole from facing the expense of defending against an unethical demand caused by a consumer. The manager and the main stakeholder of BET Consultant, Tesfamariam Teshome said they don’t buy insurance policies except when the clients asks for it and normally do not cross 10,000Br. Anyhow Tesfamariam gladly accepts this movement as it safe guards the consultants as well as the contractors in the remote future, securing perfection in their work. Tesfamariam also had a dispute on the inexistence of a qualified registration and authorization for consultants and builders, clients may go for unprofessional individuals who may not have been insured,, however minimizing the expense for project owners. The branch manager of United Insurance SC, Nebiyat Zeleke said usually the contractors and consultants do not go for Indemnity insurance policies unless they are into large projects especially government related like dams and roads. As per an executive involved in the same sector who wanted to be unknown, the new rule might safe guard the firm from huge destruction, meanwhile making an extra source of income by means of remuneration for PI insurance firms. Nebivat added this kind of activities and responsibilities of a consultant and contractors and the earlier work experience are the usual standards taken into account by a company. In case the projects are huge to handle for the company then they outsource it to other reinsurers.
 
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