Qatar Rail awards major Metro insurance deal
Doha, April 20, 2014
Qatar Railways has awarded one of the largest ever single project tunneling and rail construction insurance policies of the Doha Metro to an six-member consortium of Qatari national insurance companies, led by Qatar Insurance Company (QIC).
The consortium includes additional capacity from international reinsurers and QFC registered insurers.
This is the most prestigious and the largest insurance program on infrastructure in Qatar and one of the largest risk covers related to railways ever placed in the world. The awarding of the contract came after Qatar Rail adopted owner controlled approach to insurance procurement.
The National Insurance Consortium will provide construction all risks and third party liability insurance to Phase 1 of Doha Metro Project. The other five members of the consortium are Qatar General Insurance and Reinsurance Company, Al Khaleej Takaful Group, Doha Insurance Company, Qatar Islamic Insurance Company and Al Koot Insurance and Reinsurance Company.
QFC-registered companies Doha Bank Assurance Company and SEIB Insurance and Reinsurance Company also participate on the program.
“The Doha Metro, which is being built in a phased manner, offers immense potential for private sector investments, particularly in the construction and operations and maintenance, across different development stages,” said Abdullah Bin Abdulaziz Turki Al Subaie, managing director of Qatar Rail.
“The significant participation by the local players in this major insurance program demonstrates the strength of the domestic risk cover market and their potential to make robust contribution towards the overall economic development of the State of Qatar, fully aligned to the Qatar National Vision 2030,” said Saad Al Muhannadi CEO of Qatar Rail.
In total a majority (80 per cent) of the risk is retained by domestic insurance companies. The lead reinsurer is, Liberty, (UK), and the broker appointed by Qatar Rail is Marsh.
The 231 km Doha Metro forms an integral part of Qatar's overall railway network and will rank among the most modern and advanced integrated railways network in the world.
It is to be executed in twin stages with the Phase 1 involving the 131 km and 48 stations (underground 63 km, elevated 48 km and at grade 20 km. the Phase 2 will see the construction of 100 km(underground 37 km, elevated 53 and at grade 10 km) with 44 stations. – TradeArabia News Service