Qatar Rail offers "largest-ever" insurance contract
Qatar Rail has awarded one of the largest-ever “single project tunnelling and rail construction insurance” policies to a six-member consortium of Qatari national insurance companies, led by Qatar Insurance Company (QIC), with additional capacity from international reinsurers and QFC-registered insurers.
The other members of the National Insurance 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 programme.
Qatar Rail oversees the construction of the railway network in the country.
The 231km Doha Metro forms part of Qatar’s overall railway network. It is to be executed in twin stages with Phase 1 involving 131km and some 48 stations (underground 63km, elevated 48km and at grade 20km).
“This is the most prestigious and the largest insurance programme on infrastructure in Qatar and one of the largest risk-covers related to railways ever placed in the world,” Qatar Rail said yesterday.
“The awarding of the contract came after Qatar Rail adopted owner-controlled approach to insurance procurement,” it said.
The National Insurance Consortium will provide “construction all risks” and “third-party liability” insurance to Phase 1 of Doha Metro Project.
Qatar Rail managing director Abdullah bin Abdulaziz Turki al-Subaie said: “We, at Qatar Rail, believe that a strong public private partnership (PPP) will further strengthen the domestic economy and our model translates Qatar National Vision 2030 into achievable actions through our projects that are essentially-based on PPP.”
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.
“The significant participation by the local players in this major insurance programme 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.”
“The consortium of National Insurance Companies thanks the steering committee of Qatar Rail for their full support and trust in placing this prestigious project insurance through us. This support to the Qatari Companies and using their long history of professionalism and capabilities in the insurance field benefits the local economy. This also proves that the national insurance industry in Qatar has the capabilities to handle large scale projects of any size and complexity and provide services of highest standards to its clients,” said Ali S al-Fadala, QIC Group senior deputy group CEO.
In total, a majority (80%) of the risk is retained by domestic insurance companies. The lead reinsurer is Liberty (UK) and the broker appointed by Qatar Rail is Marsh.
Jon Marsh, vice chairman, Global Construction Practice, said: “Marsh takes great pride in our appointment to this prestigious role, which is the beginning of a significant partnership and journey. We are also very pleased that we were able to achieve the result in support of Qatar’s economy using our global expertise delivered locally.”
Marsh Qatar CEO Prasad Aniyil said: “It was yet another opportunity for Marsh to demonstrate our commitment to Qatar, its insurance market and the Qatar National Vision 2030.”
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