in­surer re­vokes Mari­en­tal flood cover

RISKAFRICA Magazine - - NEWS -

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.

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