CZECH flooding could cost industry EUR 293 million

10 June 2013 —
Insured damage from floods in the Czech Republic could cost CZK 7.5 billion (EUR 293 million), according to the country's insurers.

The Czech Insurance Association, whose members cover 98% of the market, have already registered 10,000 claims, but said the number could rise to 96,000, Reuters reported.

The Czech government has freed up CZK 5.3 billion for flood repairs. Meanwhile, Finance Minister Miroslav Kalousek said on Czech Television on Thursday that he was also preparing plans to give some affected businesses tax breaks.

Along with residential proporties several large commercial facilities have been flooded.

These reportedly include, Spolana, a chemical factory in Neratovice, north of Prague, and another chemical plant north of Prague, Lovochemie, was also affected.

The Agrarian Chamber said that 80,000 hectares out of 4.3 million hectares of farmland - mostly grain fields but also some sugar beet and hop-growing areas - were under water.

The country's main electricity producer CEZ was forced to shut down two power plant units on Tuesday as a preventative measure, cutting off supplies to thousands of homes.

The flooding this year was not as serious as record floods that hit Prague's historic centre in 2002, which cost Czech insurers CZK 35 billion.

Read the full story on insuranceinsight.com.
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