United insurance secures deed for distributed plot - A three-year dispute between United Insurance SC (UNIC) and the Akaki Kality District over a plot of land has come to conclusion, with the latter securing the site plan for it on September 9, 2011. United Insurance had leased 3,639sqm plot from the district, paying 1.1 million Br. It had later expanded by buying the lease right of 8,305sqm plot from Adiya Mohammed for 3.2 million Br.

However, the dispute with the district arose when UNIC had 200sqm of land taken away from it for road expansion and it requested a revised site plan.

The plot, located off Debre Zeit road next to DH Geda's blanket factory, had previously served as the insurer's site for damaged goods, with 40 to 50 million Br worth of private property and insured cars sitting on it.

Although, the district has been urging UNIC to start construction of the building it had intended to put up, the latter refused to do so without having the revised site plan in hand. That dispute came to a head when a taskforce from the district demolished a 500 metre brick and metal sheet fence, which the insurer claimed to be worth 600,000 Br. It was told is must start construction immediately.

UNIC had appealed to the Addis Abeba city administration and was given a grace period to start construction in July. Now that it has secured the site plan, however, UNIC has no intention of asking for damages for the fence.

"We know it was not our fault from the beginning, we also know we have a full right to ask for compensation but we are not going to do that," Eyessuswork Zafu, CEO of UNIC told Fortune. "We are now focusing on moving forward with the construction of the building."

Along with the site plan, the district has given the insurer six months to start construction and two years to finish it. UNIC already has a design for a five-story building, designed by Geretta Architects.

"We are now waiting for the go ahead from the Addis Abeba City Administration," Fasil Asnake, head-legal services of UNIC, told Fortune. "The next is to put out a bid for a contractor for the building."

UNIC, which was established in 1994, is also planning to build its headquarters on a 1,976sqm plot located around Thewodros Square on Churchill Avenue in Piazza. The design competition for the 12-storey building was completed in November 2010, with a design by Geretta Consult Plc announced as the winner. Following its recent merger with Lion Insurance Company SC, the company is currently owned by more than 200 shareholders and operates via sixteen outlets.

Hadra Ahmed

Addis Fortune/20/09/2011