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Standard Group claims Tk 500cr from its insurer

Gazi Towhid Ahmed
Standard Group has claimed Tk 500 crore from its insurer after two manufacturing units of the garment maker were devastated by a deliberate fire that caused losses worth around Tk 1,200 crore.
Due to higher premium, the garment maker had insured a portion of the assets in the manufacturing units, according to Atiqur Rahman, chairman of Standard Group.
"We have never imagined all our buildings, capital machinery and other assets will be damaged completely," Rahman said.
Standard Insurance Ltd, the insurer, has already appointed 10 surveyors to inspect the ravaged plants and assess the losses.
The surveyor firms, registered with the Insurance Development and Regulatory' Authority, will set the financial value of the accident after visiting the site.
"We will pay' Standard Group based on reports of government intelligent agencies and the surveyors," said Amar Krishna Saha, managing director of Standard Insurance.
The government has already formed several probe committees,
including one that comprises members of different intelligence agencies, to find out the reasons behind the fire.
"We are waiting for their reports," Saha said.
Enraged by a rumour that police killed two factory staff, garment workers torched the 10-storey factory' building of Standard Group in Gazipur on Friday. Four other buildings in the complex were reportedly damaged, along with 22 trucks loaded with garments.
The fire damaged capital machinery, finished garments, fabrics and raw materials housed in more than 8.5 lakh square feet of floor space in the buildings.
Standard Group employs about 50,000 workers in its 23 units. The factory' complex that was destroyed by the fire employed about 19,000 workers.
The Group exports garment products worth $325 million a year and saw a year-on-year growth of 13 percent in shipment last year.
A number of international brands such as Sears, American Eagle, GAP, Uniqlo, Zara and Abercrombie & Fitch are the clients of Standard Group, according to its website.