insurer revokes Mariental flood cover
The flood-prone, 10 000-resident town of Mariental has again had its flood cover revoked.
In 2006, insurers paid out more than N$100 million (US$ 11.1 million) in flood-associated damages when properties in Mariental were flooded following heavy rains. Subsequently, the entire town’s flood insurance cover was suspended. In September last year, however, Mutual and Federal announced the reinstatement of flood cover for the area. The move was widely celebrated and many residents cancelled short-term policies to join Mutual and Federal at a higher premium in order to acquire the flood cover.
Mutual and Federal announced in February that flood cover in Mariental will again be revoked, with effect from 1 March 2013. “[We were] informed at a stakeholders’ meeting that in the absence of participation by other short-term insurers through risk sharing and adequate reinsurance coverage, Mutual and Federal cannot continue with the insurance,” the chairman of the Mariental Flood Task Force, Chris Nel, said at the time.
“We would like the company to continue with the flood coverage. However, if a person did not claim for the past five months, Mutual and Federal should consider refunding them for the premiums they have paid,” comments Shaanika.
Extreme or erratic rains and drought trap many Rwandan farmers in poverty. Repeated bad weather can rob them of the means to recover in the following growing seasons.