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Title: Study of Insurance Practices in Ethiopian Construction Industry
???metadata.dc.contributor.*???: Abebe Dinku (Prof.)
Tigist, Gonfa
Keywords: Construction Industry of Ethiopia, Client;Consultant;Contractor;Insurance Companies;Contract;Indemnity;Insurance;Insurability;Liability;Risk Management;Formal Risk Analysis;Risk Transfer;Premium;Claim and Insurance Policy
Issue Date: Nov-2016
Publisher: AAU
Abstract: The general aim of this research is to study in detail what is being exercised in Ethiopian Construction sector related to insurance and identify problems in the current circumstances to then give relevant recommendations for better practice. Different literatures were assessed to show that risk management is a very important aspect of construction projects management and insurance is a vital construction risk transfer mechanism; to discuss the principles of insurance and the several types of construction insurance policies. Questionnaire survey was performed using randomly selected grade one contractors and class one consultants and also using all the 17 insurance companies in Ethiopia, to observe the practice of using insurance in construction projects in Ethiopia; followed by a structured formal interview held with relevant authorities. The research findings indicated that there is generally a good level of awareness at a level of opinion by majority of parties in Ethiopian construction industry regarding the importance of insurance for their construction undertakings, but the parties need to have a concrete knowledge about risk and insurance as a risk transfer mechanism to make it a practical part of their construction activities. Formal risk analysis is not being exercised by majority of the parties in Ethiopian construction sector and hence no chance to consider insurance formally as part of their risk management. But despite the policy types most parties purchase insurance policies as part of their informal construction risks management. It is also found by the time of this study many consultants do not have PI policy while conducting their business. There is an attitude by construction firms that paying premium is unnecessary cost due to the less emphasis given to insurance while the fact is the premium that insurance companies currently request for policies is not expensive. In addition, majority of the insurance companies in Ethiopia do not conduct research to identify the needs for different policies in the construction industry, which indicates a core area for them to improve and also they need to increase their efficiency of urgent claims settlement. In a nutshell the findings indicated a number of gaps in the insurance practice of Ethiopian construction sector that needs improvement and accordingly recommendations are provided.
Appears in Collections:Thesis - Construction Technology Management

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