Fiem Industries Limited , a leading manufacturer of automotive lighting and signaling equipment, has concluded its insurance claim process for a fire incident that occurred over three years ago. The company recently received the final installment of its insurance payout, marking the end of a long-standing claim.

Final Insurance Payment Received

In the first week of February 2021, Fiem Industries received the last tranche of its insurance claim, amounting to Rs 5.42 crore. This payment is related to a fire incident that took place on January 25, 2018, at the company's Unit-5 facility in Hosur, Tamil Nadu.

Total Claim Realization

With this final payment, Fiem Industries has successfully realized a total insurance claim of Rs 22.10 crore. This amount covers a significant portion of the actual damage incurred during the fire incident, which was estimated at Rs 26.16 crore.

Board Acknowledgment

The Board of Directors of Fiem Industries took note of this development during their meeting held on February 12, 2021. This acknowledgment underscores the importance of the insurance settlement in the company's financial landscape.

Impact Analysis

While the insurance payout falls short of the total damage by approximately Rs 4.06 crore, it represents a substantial recovery of about 84.50% of the losses incurred. This outcome demonstrates the company's robust risk management practices and the importance of comprehensive insurance coverage in mitigating unforeseen events.

The conclusion of this long-standing insurance claim process is expected to provide clarity on the financial impact of the 2018 fire incident and allow Fiem Industries to move forward with its business operations without the lingering uncertainty of unresolved claims.

A fire broke out at Fiem Industries Limited 's Unit-8 facility in Rajasthan's Tapukara Industrial Area, causing damage to infrastructure and inventory but fortunately resulting in no injuries or loss of life. The incident, which occurred in the afternoon, prompted an immediate response from local fire services.

Incident Details

The blaze erupted at Plot No. SP1-C in the Industrial Area Tapukara, District Alwar, Rajasthan. While the fire caused damage to the building, plant and machinery, stocks, and furniture, the company reported that it was successfully contained with the assistance of fire tenders.

Company's Response

Fiem Industries has taken prompt action in the wake of the incident:

• Safety First: The company confirmed that no injuries or casualties occurred during the fire.
• Insurance Claim: Procedures have been initiated to file an insurance claim, as the company's assets are adequately covered.
• Operational Recovery: Management has pledged to implement swift measures to resume operations at the affected unit as soon as possible.

Financial Impact

The full extent of the damage and associated financial impact is yet to be determined. In a statement to the stock exchanges, Arvind K. Chauhan, Company Secretary of Fiem Industries, noted:

"The ascertainment of loss / damage will take some time and will be informed / updated in due course of time."

Looking Ahead

While the incident is undoubtedly a setback for Fiem Industries, the company's proactive approach in addressing the situation and its commitment to a quick operational recovery may help mitigate long-term impacts. Investors and stakeholders will be keenly awaiting further updates on the extent of the damage and the timeline for resuming full operations at the Tapukara facility.

Fiem Industries has assured that it will keep the market informed about any developments related to this incident. The company's shares may experience some volatility in the short term as the market assesses the potential impact of this event on the company's operations and financials.