Assessment of Insurance Company’s Roles in Ethiopian Construction Industries

Abstract

Presently, Ethiopia has relatively an extensive program of infrastructure development and it is growing faster. The construction of new infrastructures, high rising buildings, energy and water work projects, airfields etc. are among the major construction activities. Construction insurance plays an increasingly important role in guaranteeing the success of projects. However, insurance sometimes does not receive the attention for it. Construction risks are uncertain events or conditions that may have an adverse effect on the construction projects. Due to this, this research amid to assesses the insurance practice, the problems and challenges encountered while implementing in Ethiopian construction industries. Questioners were designed and both cense and judgmental sampling techniques were applied. The study finds out most of the contractors are willing to buy insurances for their vehicles and plants and has no awareness about other types of construction insurances like third party and contractor’s all risk insurance coverage. On the other hand, insufficient documentation and low level of awareness of customers towards the benefit of insurance, financial and professional shortages are challenges that insurance companies faced. As a result, Ethiopian government should create awareness about insurance and formulate enforcing law that enables using of insurances for all construction works.

Keywords: - construction, contractors, insurance, risk, role

DOI: 10.7176/CER/12-3-03

Publication date:March 31^st 2020