Hong Kong hotel blaze could lead to city’s largest-ever insurance payout of up to US$64 million: industry expert
- Claim could range from US$25 million to US$64 million depending on whether demolition is necessary, says insurance expert and legislator Chan Kin-por
- Building will be eligible for high level of compensation because it was 90 per cent complete, he says
The claim could run from HK$200 million (US$25 million) to as much as HK$500 million because the 42-storey hotel was 90 per cent built, which entitles it to a high level of compensation, said Chan Kin-por, who represents the insurance industry in Hong Kong’s legislature.
The payout will be among the highest in Hong Kong history – if not the highest – because it will be paid under a category of insurance called “contractors’ all risks” insurance, he said.
“Usually, contractor-risk coverage only pays out at about HK$20 million or so,” said Chan, who worked for Hang Seng Bank’s insurance unit and Munich Re before entering public service. “The compensation amount will be high because the building is almost completed, as the amount will pay to rebuild the completed part. The later the damage occurs during the construction period, the higher the sum that will need to be paid.”
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Hong Kong firefighters battle skyscraper blaze all night, investigation under way
The site is a redevelopment of the former Mariners’ Club into a 42-storey, 500-room hotel, which had been expected to open in 2024.
