The victims of the disaster that shook the locality of Mihailesti yesterday would have been entitled to damages worth tens of millions of euros, paid by the insurance companies, had the accident occurred in eight or ten years' time or if it had happened some 400 kilometres away, in the European Union.
Damages are paid by insurers to victims in the case of civil liability insurance, namely for damages incurred by third parties. In the European Union, every company has to own a civil liability insurance policy. This does not apply here. Beyond the human tragedy, Monday's accident points to the tragedy of the malfunctioning public administration in Romania, to the under-developed insurance industry, to the inability to apply the laws, but also to the very absence of such laws themselves.
The explosion of a truck full of ammonium nitrate yesterday morning in Mihailesti, Buzau County, caused one of the most catastrophic accidents ever to happen on the Romanian roads: at least 16 were killed and 11 injured. The blast also destroyed a big chunk of road, the firefighters' engines and some of the houses located in the area. Ammonium nitrate explodes when the temperature exceeds 160 degrees Celsius. It is not yet clear whether the fire was a consequence of the accident or whether the fire actually caused the catastrophe. It is certain, however, that the fire caused the blast.
According to market information, Mihtrans, the carrier, only held a Casco insurance policy - which covers damages inflicted to the vehicle - and a civil liability insurance policy. The latter policy does not cover the damages caused by the cargo, as happened in Mihailesti, where the ammonium nitrate exploded. The damages will be paid either by the carrier or the buyer, the Piatra Neamt-based Beesarsen company, depending on the contract stipulations.
However, the damages worth tens of millions of euros (considering the loss of human life) cannot be covered by these companies, since they do not have access to this kind of money. Even if they are sold, the price would not match the value of the damages.
According to the Ministry of Public Finances, Beesarsen SRL is a micro-enterprise that posted 400 euros in sales in 2002, whereas the carrier, Mihtrans Com SRL logged 600,000 euros in turnover, with assets worth 500,000 euros and debts amounting to 600,000 euros in the same year. It is not known yet whether Mihtrans or Beesarsen hold a general civil liability insurance policy, but it is highly unlikely. Only this kind of policy can cover damages incurred by third parties. The Casco policy was issued by Allianz-Tiriac and covers damages of up to 70,000 euros, Cristian Constantinescu, general manager of Allianz-Tiriac told Ziarul Financiar yesterday. The damages will be paid to the carrier, which purchased the insurance.
The civil liability insurance (RCA) was issued by Unita. "We may be the RCA insurer for the respective truck. But, as far as we are aware, the prosecutor's office has found that the cargo was labelled as dangerous and, according to the law, the RCA policy does not cover this kind of cargo," Unita stated.
sorin.pislaru@zf.ro
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