LATVIA: BTA pays LVL 145,665 as compensation for construction materials lost in the fire of Riga Castle

30 August 2013 —
BTA Insurance Company SE has performed a payment of a compensation worth a total of LVL 145,665 to Valsts nekustamie ipasumi for the fire at Riga Castle.

In accordance with the agreement with SBRE construction company, the construction risk insurance policy covers all losses. This includes losses of construction resources, construction platform's equipment and other related matters, BTA reports.
Given that construction work at Riga Castle had only just been initiated, there were no significant investments made in the project. Also, there was not much present at the site in terms of construction equipment.

The total estimated amount of the compensation is LVL 146,665. This includes LVL 94,144 for construction work, LVL 25,620 for construction resources, LVL 19,389 for construction equipment.
The amount of the insurance claim was calculated based on the documents that were submitted by SBRE and reports of experts. SBRE has assessed the amount of the insurance claim and has approved it.

Considering that the insurance policy was signed in favour of Valsts nekustamie ipasumi, the insurance claim can only be transferred to SBRE with consent from Valsts nekustamie ipasumi. BTA received a reply from the latter on August 19. In it, the company declines to have the insurance claim be transferred to SBRE and instead asks to have it transferred to the account of Valsts nekustamie ipasumi.

Based on the reply of Valsts nekustamie ipasumi, BTA transferred LVL 145,665 to the account stated in the letter.

BTA has also insured SBRE's civil responsibility, covering the damage done to health or property of third party persons. Civil responsibility will be presented if SBRE is deemed responsible for the fire.

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