On the basis of the information currently available, we recommend that Insurers establish a
Property Damage reserve of THB 20,000,000, subject to policy liability being engaged. This
is based on the anticipated rectification costs of damaged columns and associated costs i.e.
the dismantling costs to enable inspection and repair etc.
The Insured has indicated that a loss of Gross Profit arises from the incident following rent
rebates given to affected tenants. Furthermore, increases in the cost of working have been
incurred to mitigate the extent of loss. However, no detail has been provided to us in relation
to the potential Business Interruption loss at this time and it is not possible to recommend a
reserve in this regard.
We will comment further once information is provided by the Insured.