June 3 victims remembered. Any insurance lessons?
The atmosphere is heavily blood-scented 366 days after; Families are famishing as their bread winners are no more 366 after
Advertisement
Children stop schooling because parents left them with nothing to fall on 366 days after
Businesses fall apart as capital is hurriedly flushed down the flood-fire 366 days ago
The owner of Gye Nyame Block factory passed on while filling his fuel tank thus leaving his now unemployed workers in bitter tears 366 days ago
Akua, the only child of the Mensahs went job-hunting that fateful day and never returned - dead or alive 366 days ago
Kofi, a journalist is recuperating from the burns on his face at the Allied Ward of Hospital Number 37
It could be you, it could be me, it could be anybody”
The above poetic intro to this week’s write-up should be enough to remind us of the fact that life is so painful without any insurance as backup no matter how little.
Sad memories
It’s been exactly a year ago and memories of the June 3, 2016 floods are still very fresh in our minds. The ‘Never Again’ memorial service was held on June 3 last week!
The events that unfolded that fateful night were those that nobody ever anticipated, but the realities of life are hidden in the fact that “no one knows tomorrow”! Indeed, the unfortunate aftermath of the calamitous flood and inferno really confirmed to me that you can run but you can’t hide. Nevertheless, the wanton destructions caused by this event leading to unimaginable loss of lives and properties only reinforced the need for insurance, since the occurrence of mishaps and their resulting dire consequences, will continue to remain elusive.
Likely cause of disaster
I turned on my radio and started hearing of 20, 30, 40, 72…and then 152 human bodies and still counting! You may choose to describe it as ‘flood fire’ - A clash of water and fire! Precious Ghanaians reportedly lost their lives to floods and fire, after seeking refuge at one of the Nation’s busiest fuel stations, at the Kwame Nkrumah circle. As sketchy and conflicting as the initial reports were, the inferno was alleged to have been caused by an electric generator, which was affected by the seeping flood waters and blew the entire combustibles into flames; and thus, extending to adjoining properties including vehicles, shops and houses; causing the “instant justice”. A second report alleged that the fire was caused by a lit “cigarette-like” char possibly falling into the flood waters from an adjoining house, contaminated by combustible petroleum products.
Whatever the cause(s) might be, insurance experts have done due diligence so far and deserve some commendation.
At the time, many were a bit paranoid as regards the capacity of insurance companies to pay claims that may arise as they could be near humongous!
Insurance claims paid so far
As I constantly posit in my writings, everyone has an equal responsibility to always take self precaution (e.g., insurance), as this will not only provide them protection or security against unexpected losses, but also the peace of mind to focus on other aspects of life.
Reports indicated that as of yesterday over GH¢236 million, US$25 million and 453,000 euros have been incurred in claims by insurance companies from the June 3 flood fire alone. This is enough to bring insurance companies down on their knees.
If there is any lesson to learn here, it would be that of a good one for those who had insurance policies on themselves and an unfortunate one for those who did not have.
How claims were arrived at.
Undoubtedly, the calamitous event came with heavy insurance implications, as most insurers adequately lived up to expectations and paid claims and compensations to deserving individuals, businesses and families of the injured and deceased. Indeed, insurance policies ranging from funeral, public liability, machinery and equipment breakdown, personal accident, motor, business interruption, fire and allied perils, etc are some of those likely that could be traced to the claims baskets of insurers; claims are still being investigated and paid.
Given the magnitude of destruction, the resulting losses are unquantifiable, considering the fact that human lives were involved. Chances are that identification of many of the bodies of the victims could pose a challenge, especially for life insurance compensations as some claims may not even be made.
As to whether it was the floods that caused the fire or the fire that defied the power of water and ravaged the entire enclave instantly is a mystery that requires a deeper scientific understanding to unravel. This notwithstanding, it is clear that there was a trigger e.g. the “cigarette-like char” or the generator. This therefore brings to mind the subject of Proximate Cause in insurance.
Proximate cause and claims processing
The belief is that, every loss is the effect of some cause. Insurance policies cover only a limited catalogue of causes and it is important to examine carefully, the cause of any one loss. The causes of a loss may be single or a chain of them – one prompted by the other. The peril may be an insured one or an uninsured one or an excluded peril and that may create challenges. The onus is however on insurers to establish the nearest effective cause, that is, not necessarily the last, but the most dominant. This helps in the determination of claims payment, especially in disasters of this magnitude.
Advertisement
Suffice it to say, insurers did a good job in investigating and paying claims arising from these floods. In technically cumbersome circumstances such as this one, insurers I believe might have engaged the services of professional Loss Adjusters to ensure fair compensation payment. Thus, after reviewing the claim documentation, coupled with a satisfactory preliminary findings regarding the cause and extent of loss to lives and/or property, the Loss Adjusters will advise the insurer on the appropriate compensation to be paid. In the case of the filling station, for instance, the owner may be required to submit proof of value of the loss for repairs and/or replacement, which will be thoroughly reviewed before a final consideration is made. Perhaps that could be the reason the place is still deserted not necessarily because of the magnitude but due process would have to be followed if there was an insurance package in place.
Where public liability is established, however, the compensation payable (i.e. sum insured) becomes open for negotiation.
The way forward
It is gratifying to note that we are not completely lacking insurance awareness as many people and businesses have the right insurance policies in force at the time of floods hence the huge claims paid.
The insuring public must always demonstrate greater responsibility in such unfortunate circumstance, by activating immediate responses or taking appropriate steps to minimise the damage to their lives and properties. Moreover, the insuring public must ensure that their insurance policies remain in force (and not lapsed) at all times to avoid claim repudiation. It is good to learn that the aftermath of this has led many businesses getting insured. Life can take us by surprise no matter how careful we are.
Advertisement