Flood insurance might have to be ended if the authorities don’t take drastic action to prevent a recurrence of the deluge that swept the capital on November 27th, 2013 an industry advertisement said yesterday.
Twelve insurance companies and brokers in an advertisement in the Sunday Stabroek said that the flooding of November 27th has already seen damage claims in excess of $150m. It said that with an entire rainy season ahead, the anticipated losses may exceed the “staggering” claims of the Great Flood in 2005 if the status quo remains.
It added that the flooding caused by just eight hours of rainfall on that day was similar to the result of two weeks of rainfall in 2005.
The advertisement under the rubric of the Insurance Association of Guyana (IAG) said that when flood coverage was contemplated by insurance companies here it was provided on the “knowledge that drains and canals were kept clean and properly maintained” and not used by citizens for the disposal of garbage and refuse.
It lamented “Clearly, the dynamics have changed and by extension, the level of risks associated with continuing to grant flood coverage”. The statement added that insurance companies are at a distinct disadvantage since risk loss mitigation rests primarily with the authorities responsible for keeping drains and canals clean.
The IAG warned that if preventative action was not taken flood coverage in Georgetown and its environs could end or at the very least there would be an increase in premiums for flooding and overflow from the sea, an increase in deductibles and the implementation of a minimum height requirement for the storage/display of stock being traded.
This planned action in the near future, the IAG said will severely impact businesses and the economy. The IAG said it was therefore beseeching the relevant authorities to take action to clear drains and canals in the city and its environs.
The ad was sponsored by the Demerara Mutual Life Assurance Society Ltd, Demerara Fire and General Insurance, Cari-com General insurance Inc, GCIS inc, Guyana Trinidad Mutual Group of Insurance Companies Ltd, Hand-in-Hand Life, Hand-in-Hand Fire, John Fernandes Insurance services Limited, North American Life Insurance, North American Fire Insurance, Assuria Life and General (Gy) Inc and Guyana Insurance Bro-kers. Incessant rain, which began in the wee hours of November 27, left most of the city under several inches of water, closing schools, shuttering businesses and causing millions of dollars in damage.
In Albouystown, one of the worst affected areas, residents were livid, stating that the magnitude of the flooding could have been prevented had the drains been cleaned on a regular basis.
Several businesses in the city’s main shopping area, Regent Street, were forced to close as the floodwaters poured in.
Since the flooding, the city and the government have traded blame as to where the responsibility lay. In recent days, the government has announc-ed a clean-up project for the city and several of the major canals are being cleared.
