On April 24 2013 occurred the collapse of Rana Plaza building, at Savar, close to Dhaka, the capital of Bangladesh. At least 1,127 people deceased while 2,437 were injured. The building contained several factories that produced clothes for at least 28 brands. One of those brands was a supplier for Primark.
The necessity of compensating the injured and deceased workers, applying for that an actuarial calculation system adjusted to the international best practices made that Primark, one of the main European retail companies affected by the disaster, considered the necessity to carry out a calculation of the compensations to pay to injured or deceased workers, which incurred on The Savar Project
; an actuarial model to manage the crisis emerged after the collapse of Rana Plaza productive center.
The challenge was enormous as we found a country where it is not easy to locate and manage the possible beneficiaries, where there is no financial nor insurance system as we normally know it, where there are no clear mortality and surveillance statistics, no injury valuation regulations, where rules have limited capacities, religions and traditions are significantly different into the country, which prevents a compensation distribution via standard methods, and where those compensations may generate huge tensions and situations of victims vulnerability. All of that made a challenge to look for an effective compensations system, which surpassed the technical framework. IDEAS
actively participated in the elaboration of this adequate model, innovating in a methodology that allowed to calculate, on one side, the amount of the compensations for the families of the deceased workers and the distribution between them, taking into account the different religions and consequently the different applicable regulations in Bangladesh. One the other hand, it was also calculated the amount of the compensations for injured workers, based on an adaptation of the Spanish Accidents Insurance Scale.
A further explanation of the approach of The Savar Project is detailed on the attached PDF.
The consequence of the approach is that several years later, all beneficiaries have received their compensations and the model has been debated with UN, ILO and some other international organisms. Also, we do believe it has become a paradigm to be used at the payment of compensations in non developed countries. IDEAS has contributed their bit to fulfil a better world, why we would like to thank ABF-Primark and Mr. Javier Chercoles as manager of the project, the chance they gave us to actively collaborate in this successful project. Descarga PDF