Nico General Insurance, through Kingfisher Insurance Brokers and Consultants, on Friday presented cheques of K298 million to Eastern Produce Malawi Limited (EPMâ€™s) towards fire and loss of business claims.
A fire that entirely razed EPMâ€™s Makwasa tea factory on August 31 2011 damaged a building and machinery.
Kingfisher Insurance Brokers and Consultants managing director Henry Sisya said K285 million was towards the fire damage claim and K12 million for loss of business.
He said K50 million was paid about a month after the accident and that now there is about K325 million yet to be paid.
â€œWe are quite grateful to Nico for their cooperation. We believe our client [EPM] is happy.
â€œWe go through a rigorous process selecting insurers and we are proud to have picked Nico; they have kept their promise,â€ said Sisya.
Nico Generalâ€™s chief executive officer Eric Chapola said they were happy to fulfil their promise and that Nico was committed to pay the whole claim.
EPMâ€™s financial director Ken Rice said the presentation was â€œa mark of honourâ€.
â€œIt is of utmost importance to all stakeholdersâ€”owners and employeesâ€”to have adequate insurance to help in such incidents.
â€œWe are grateful to Nico and Kingfisher for the advice over the years,â€ said Rice.
EPM is Malawiâ€™s largest tea producer responsible for 40 percent of the countryâ€™s tea output.
According to Rice, EPMâ€”which has nine tea factoriesâ€”grows tea on about 6 000 hectares and employs 19 000 people at the height of the season and about 5 000 less off peak season.