Not buying fire insurance, business households lose billions of dong

(Baonghean) - According to the Fire Prevention and Fighting Law, production and business establishments are required to purchase fire and explosion insurance (FFI). However, in reality, most people are still indifferent to this regulation, even though it is a practical and useful lifesaver when an incident occurs.

Fire and heavy damage

Since the beginning of 2017, dozens of fires have occurred in the province, causing billions of dong in damage. For example, a grocery store fire in Tan Ky town occurred at around 11:10 p.m. on July 17. At that time, people discovered black smoke billowing dozens of meters high at Mr. Dai's grocery store in Block 7, Tan Ky town.

Upon receiving the news, Fire Prevention and Fighting Police Team No. 5 dispatched two specialized fire trucks and dozens of soldiers to the scene to put out the fire. However, because the homeowner locked the door and the grocery store contained many flammable materials such as plastic tables and chairs, foam boxes, fabrics, etc., in just a short time, the fire engulfed and burned down the 60m2 house and all the property inside, causing about 1 billion VND in damage.

Fire Police force tries to approach the scrap warehouse fire in Vinh Tan ward (Vinh city). Photo: Canh Nam

Not long ago, Vinh city residents were shocked by a large fire on Le Huan street, at the scrap warehouse of Mr. Ngoc and Mrs. Dung, located in a warehouse with an area of ​​nearly 2,000 square meters.

About 2 hours after the fire police intervened, the fire was temporarily controlled and extinguished, but all the raw materials in the scrap yard were burned down and 15 other warehouses containing packaging, candy, rice and bicycle shops... of neighboring households were burned down. The estimated damage was tens of billions of dong.

According to statistics, from the beginning of 2017 until now, there have been 49 fires in the province, causing damage of 11.2 billion VND, and slightly injuring one person. It is worth mentioning that most of the fires were not covered by compulsory social insurance, so all financial losses were borne by small traders without any insurance organization to share.

People remain indifferent

Detailed regulations for the implementation of a number of articles of the Law on Fire Prevention and Fighting in Decree No. 79/2014/ND-CP of the Government clearly state that establishments that must participate in compulsory fire and explosion insurance include: Stores trading in petrol, liquefied petroleum gas; markets, shopping malls; apartment buildings, hotels; theaters, cinemas, sports stadiums, dance halls; train stations, airports; seaports...

However, in reality, only petrol businesses, shopping malls... - places that are regularly inspected for fire safety - seriously participate in compulsory social insurance, while people and small businesses are still indifferent to this type of insurance.

Ms. Doan Thi Ngan - a small trader in Con Cuong town market said: "I have been doing business in the market for nearly 30 years now but have never heard of fire insurance. I think the market management board has already bought it so I don't care much. Moreover, the market is currently sluggish, if someone comes to sell insurance products, I probably won't buy it."

Sharing the same thought as Ms. Ngan, Mr. Thai Hung Phi - a plastic products business in Vinh Tan ward, Vinh city said: "I know that buying insurance has many benefits, especially when unfortunately there is a fire or explosion. However, I have been doing business in this product for more than 10 years without any fire or explosion so I am "afraid" to spend money."

Obviously, this is a very subjective thought, because plastic materials have a very high risk of fire. In the summer, just an electrical short circuit can cause a fire that is quick and difficult to extinguish.

Efforts to extinguish a warehouse fire in Quan Bau ward (Vinh city). Photo: Canh Nam

Lieutenant Colonel Nguyen Van Thanh - Deputy Head of the Inspection Team of Fire Police Department No. 1 said: Currently, in Vinh City, there are 415 establishments subject to compulsory social insurance but only 99 establishments have implemented it. Through inspection, propaganda and handling, it can be seen that people are still very indifferent to compulsory social insurance, they are subjective and do not have a clear understanding of the provisions of the law in implementing the compulsory insurance regime.

In addition, some small businesses, with limited budgets and intermittent operations, do not purchase or only purchase a portion of the asset value. In addition, some establishments are operating but have degraded, do not have fire protection design approval, lack or do not equip and install synchronous fire protection systems... so insurance businesses do not sell insurance to these establishments.

To raise awareness and responsibility for participating in social insurance and above all, to make production and business establishments voluntarily participate in compulsory social insurance, it is necessary for the provincial Fire Prevention and Fighting Police force to strengthen inspection and strict punishment according to the provisions of the law; insurance businesses need to step up propaganda to attract customers... Only then will people easily access and understand the benefits of social insurance and the provisions of the law on compulsory social insurance.

Along with that, production and business establishments must also raise awareness, consider ensuring fire prevention and fire safety and purchasing industrial and technical property insurance as other fixed costs. This will help businesses feel secure in production and business, while minimizing damage when risks occur.

Thao Anh