No claims for insurance money can be made in connection with Sunday’s fireworks factory explosion in Għarb, which killed six people, The Times has learnt.
The Farrugia Brothers Fireworks Factory was only covered by an insurance policy for the transportation of the explosives to the firing site, KDM Insurance Brokers said.
Together with other fireworks factories in Malta and Gozo, the Farrugia Brothers Fireworks Factory fell within the block insurance policy taken out with KDM Insurance Brokers, appointed by the Malta Pyrotechnics Association.
“The association has a block insurance policy in place covering the firework licensees but this is a third party liability policy specifically designed to cover the period when fireworks are being let off and while the fireworks are transported from the fireworks factory to the site/s. Therefore, nothing relating to this unfortunate accident can be recovered under this policy,” KDM Insurance Brokers general manager Alberto Bisazza said.
He pointed out that this was not a case of “small print” but it was a policy that did not cater for such eventualities.
“All licensees are fully aware of the policy conditions and know that any incident relating to the fireworks factory is excluded. We must emphasise this is a policy designed to cover the liabilities of the licensees towards third parties as long as they abide by the laws and policy conditions,” he said.
The policy does not include any damages to buildings within the fireworks factory or damages or injuries incurred by the licensees while on site.
The Malta Standards Authority regulates fireworks placed on the market as it was responsible for the implementation of an EU directive which also listed the essential safety requirements.
Also, the legal provisions for placing high-risk fireworks on the market would only enter into force in July 2013, as specified in the directive itself, authority CEO Francis Farrugia said.
Any provision related to use, licensing, storage, transport and any other regulation fell under the Explosives Ordinance and not under the remit of the authority, Mr Farrugia said.
Fireworks enthusiasts were informed about new insurance premiums and conditions to let off fireworks in feasts during an information meeting held in June. Among other things, they were told to include a 30-metre buffer zone around ground firework displays and, if they failed to do so, they would have to shoulder responsibility for any damages.
Pyrotechnic association lawyer Michael Falzon had warned enthusiasts the association would not tolerate any abuse or defend anyone found guilty of breaking the law.
Under the new policy, brokered by KDM Insurance with an English company, the fireworks factories will be covered for a maximum of €250,000.
It was not easy for the association to find an insurance policy to cover damages. It had emerged during June’s information meeting organised by the insurance brokers that in the past three years, more than €400,000 worth of claims were made by Maltese fireworks factories.