Compensation denied

The owners of the five textile mills in the nine-storey building that collapsed on April 24 are in conflict with their insurers. The accident had 3000 workers buried under the rubble among whom nearly 630 were dead. Insurance companies argue that these plants were located in a building that was not designed to be a textile mill, characterizing its construction to be illegal.

The building was established on a marshy and flooded piece of land whose foundation could withstand six floors only. Insurers therefore rejected this claim even if the collapse guarantee was offered.

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