Collapsed building contractor and insurer revealed

The building was insured for $19m

In Pictures: EXCLUSIVE: Dubai building collapse, as it happened | In Pictures: Dubai building collapse

By Alex Delmar-Morgan

Sharjah-based Al Hazza Building Contracting Company was employed on the collapsed building in Dubai, sources in the firm disclosed to Construction Week's sister publication Arabian Business on Monday.

Speaking on condition of anonymity, two employees of Al Hazza confirmed to Arabian Business that the company was the contractor on the project which collapsed on Sunday in Deira, one of Dubai’s most densely populated areas.

Arabian Business has also established that the building was insured for a contract value of AED70m ($19m) with National General Insurance (NGI).

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A source from NGI’s engineering department, who did not wish to be named, said Al Hazza had reported the incident to NGI, which had appointed a loss investigation company to look into all aspects of the claim.

Preliminary findings from the investigation, which will assess the cost of the damage, are expected to be presented to NGI in around a week to 10 days.

NGI would only be liable for AED500,000 ($136,000), with the remainder of any potential claim covered by the reinsurer, the source added.

“It’s too early to comment on a claim. We have full protection from our reinsurers. Ultimate liability that NGI has to pay out of its own pocket will not be more AED500,000,” the source said.

Earlier on Monday the head of building inspections at Dubai Municipality said a ‘structural problem’ had caused the building to fall down.

No injuries have been reported.