The cargo village at Hazrat Shahjalal International Airport, gutted in the recent devastating fire, had insurance coverage of only Tk20 lakh, according to officials. 

As a result, the Civil Aviation Authority of Bangladesh (CAAB) – which owns and manages the cargo village – will be entitled to a maximum insurance claim of only that amount, regardless of the extent of physical damage to the facility.

Regarding the imported and exported goods destroyed in the fire, officials told TBS that importers usually insure their shipments abroad, typically in the supplier's country, to reduce costs, while exporters are not legally required to insure their consignments.

Insurance Development and Regulatory Authority (IDRA) spokesperson Saifunnahar Sumi told TBS that the regulator will soon send letters to local insurance companies seeking information on whether any policies were issued under the loss product and the total amount of claims. IDRA will also instruct insurers to settle valid claims as early as possible.

SM Shah Alam, general manager of the Sadharan Bima Corporation (SBC), the only state-owned non-life insurer, told TBS, "It is difficult to provide a straight answer to whether the entire cargo village was insured. Only a small section is insured, with a coverage limit of Tk20 lakh."

He added that the SBC offers fire insurance with unlimited coverage options, but Caab opted for minimal coverage to reduce premium costs. "After they submit a claim, SBC will appoint a surveyor to inspect the site and verify the loss. Based on the report, compensation will be settled accordingly," Shah Alam added.

He noted that while insurers generally check the fire safety measures of insured establishments, there is no legal requirement for such verification in Bangladesh. Hence, SBC did not previously assess the fire safety compliance of the warehouse.

SBC officials said the Tk20 lakh insurance policy was purchased by Caab long ago for a one-year term and has been renewed every year since, with the coverage amount remaining unchanged.

Import goods insured abroad 

Despite the legal obligation to insure imported goods with local companies, importers often choose to insure abroad – typically in the supplier's country – due to lower costs. Exported goods, on the other hand, are not legally required to be insured in Bangladesh.

Shah Alam said, "Insurance costs in Bangladesh are higher. That's why traders usually insure imported goods with foreign companies through their suppliers."

Hence, insurance claims for the imported goods destroyed in the Shahjalal cargo village fire will have to be pursued through foreign insurance companies.

No compensation if sabotage is proven

According to the IDRA, if investigations confirm that the airport fire resulted from sabotage, neither CAAB nor Bangladeshi importers will be eligible for any insurance compensation – domestically or abroad.

Massive business losses

At a press conference yesterday, Mohammad Hatem, president of the Exporters Association of Bangladesh (EAB), estimated that the fire caused exporters losses worth around Tk12,000 crore.

Hatem said it is still difficult to accurately determine the total loss suffered by exporters.

Zakir Hossain, general secretary of the Bangladesh Association of Pharmaceutical Industries (Bapi), said that Tk200 crore worth of raw materials imported by 32 pharmaceutical companies were completely destroyed in the blaze.

A massive fire erupted in the cargo area of Dhaka's Hazrat Shahjalal International Airport (HSIA) on 18 October, forcing authorities to suspend flight operations as 37 Fire Service units battled the blaze. The fire caused extensive damage, though the full extent is still being assessed. 

What's stored in the cargo village?

The cargo village handles all air imports and exports through separate import and export zones. Newly arrived goods are stored near the import area, while export shipments wait for air transport.

The facility serves as an integrated cargo hub where goods are handled, inspected, packaged, stored, and cleared by customs. It includes warehouses, cargo terminals, customs zones, specialised storage, courier offices (such as DHL and FedEx), security systems, and transport areas.

Perishable items like fruits and vegetables are cleared within 24–48 hours, while ready-made garments are typically shipped within 2–3 days. However, exports may be delayed due to limited cargo space, and imports often wait for customs clearance.

Officials fear the recent fire may have destroyed hundreds of tonnes of imported goods, causing major financial losses. Insurance claims are expected to take time.

Dhaka Airport fire / insurance