KARACHI, Dec 29: Insurance companies will bear the major brunt of huge losses incurred during violence in the county and the biggest loss would be in Karachi where more than 700 vehicles were torched and over 140 bank branches were set on fire.

Apart from this, two main victims of violence, factories, godowns, markets and commercial buildings were also vandalised and burnt in Karachi and other parts of Pakistan.

Most of them are commercially important properties and are insured, and the amount involved is huge that could collapse some insurance companies.

An Adamjee Insurance Company officer said it would require weeks and months to assess the actual cost of damage, but apparently the loss could be in billions.

He said it is yet to be known how much damage has been caused as reports are reaching from remote areas of the province. The far-flung areas of the province were more affected.

Reports reaching here reveal that convoys carrying goods to up-county were looted or set ablaze. It is not known how much convoys carrying goods were trapped in the violence, but a car dealer said several convoys carrying luxury vehicles were set on fire which alone could cause more than a billion of rupees loss.

About a dozen general insurance companies are operative in the country, but the insurance penetration is much lower than India and Sri Lanka. However, due to large population of over 160 million, the market is wide enough to yield good money to the insurance companies.

An insurance officer, who inspects and estimates losses and prepares initial reports, said the loss could collapse some new-comers in the field of general insurance as they are yet to develop their network.

A company with a small network could not face the huge loss like the violence that erupted on last Thursday, he said.