Advert

Damage claims are highest in nine years

Insurance companies still counting the cost

Last week’s storm left wreckage in its path. Photo: Darrin Zammit Lupi

Last week’s storm left wreckage in its path. Photo: Darrin Zammit Lupi

Damage caused by last week’s floods will result in the largest insurance payout in almost a decade, according to three leading insurers.

Insurance companies were still counting the cost yesterday as claims on damaged cars, houses, businesses and yachts were still pouring in one week after the storm of September 3.

Matthew von Brockdorff, deputy managing director at Atlas Insurance, said his company had received claims to the value of €1 million.

Atlas received 45 claims valued at €200,000 for damaged cars and 185 claims valued at €800,000 for damage caused to property, commercial outlets and yachts.

“The number of claims and their cost is the largest since 2003 but it is still a long shot from that event,” Mr Brockdorff said.

A six-hour-long storm on September 15, 2003 caused widespread damage and led to a record €14 million worth of insurance payouts.

Malta had also tapped emergency EU funds at the time, after the European Commission classified the event as “a major disaster” and awarded a grant of almost €1 million.

Mr Brockdorff, who is also president of the Malta Insurance Association, an umbrella group for insurance firms, said it was too early to come up with a global sum for damage claims handled by all insurance companies.

Patrick Muscat, chief claims officer at Middlesea Insurance, said his company had received some 50 claims for damaged cars and another 300 claims related to house and business insurances.

“It is still too early to assess the damage in monetary terms but, while individual claims seem to be much higher than those received in 2003, the value is likely to be much smaller,” Mr Muscat said.

Julian Mamo, a director at insurance firm Gasan Mamo, said storm damage was “not as bad as expected” but would still represent the largest storm claim since 2003.

He declined to put a value on the expected insurance payout but added the company was still receiving claims.

“Residences, small businesses and a large number of cars were affected by the storm,” Mr Mamo said.

He noted that the infrastructural works done after 2003 to tackle the flood-prone areas in Marsa and Qormi helped reduce the problems caused by the flash floods.

According to Mr Brockdorff regular road maintenance helped mitigate the problems but houses were less prepared.

“The storm hit early this year and most property claims were a result of lack of home maintenance after the summer months,” he said, adding that things were made worse by the high winds that lashed out during the storm.

He also had a cautionary word for property and business owners who were not covered by an insurance policy and whose damage will be very difficult to assess.

“Despite the high cost to us, such events help to highlight the importance of having insurance because it is at times like this that it comes in handy.”

[email protected]

Advert

28 Comments

Post comment

Please see our new Comments Policy

Comments are submitted under the express understanding and condition that the editor may, and is authorised to, disclose any/all of the above personal information to any person or entity requesting the information for the purposes of legal action on grounds that such person or entity is aggrieved by any comment so submitted.

At this time your comment will not be displayed immediately upon posting. Please allow some time for your comment to be moderated before it is displayed.

For more details please see our Comments Policy

Your User Profile is incomplete.
Please click here to complete your profile before posting comments.

Tony Borg

Sep 11th 2012, 10:50

Very well said Ian and in Malta brokers and insurance alike introduce different rules to our market that in other countries are unheard of.

A case in point is when loosing Electronic equipment...........in other countries they just replace whereas in Malta they will depreciate and give you a fraction of what was worth before.

Pablo Mallia

Sep 11th 2012, 10:52

Well said Ian, They have been insuring they profits for years and years, Xi darba imiss lill Papa! After all what is an insurance for? If each one of us opens his own account and call it insurance, places the premium in this account, most likely we would end up with a positive balance in our account.

Joseph Micallef

Sep 11th 2012, 11:27

Perfectly said... who cares about how much money they need to fork out. I pay the premium and if something goes wrong, they have to fork out money - full stop.

j dough

Sep 11th 2012, 11:42

well said.

joseph oliva

Sep 11th 2012, 11:40

hekk uuu!! ili najda din jien! imma il malti jew bahnan jew irrid jilghba tal qaddis iktar mil papa

Peter Murray

Sep 11th 2012, 09:43

Or else an insurer will demand an exorbitant premium.In any event -excellent suggestion sir!

Gordon Galea

Sep 11th 2012, 09:45

That's called saving - what would you do with a mere 5K in case of flooding, fire etc? It won't be enough to replace the kitchen.

Mr Tony Gatt

Sep 11th 2012, 09:46

But car insurance is compulsory in Malta, surely?

John J Borg

Sep 11th 2012, 10:10

the system works only when settling small claims!......if a house collapses damaging the 2 neighbors houses......then you wish you had invested those 5000.....

Mr Tony Gatt

Sep 11th 2012, 09:48

It was ever thus- insurance companies are not charities- they are there to make money.

Joseph E Briffa

Sep 11th 2012, 10:07

@Peter Murray...I suggest you do some reading about insurance before you comment.

Peter Murray

Sep 11th 2012, 10:15

Who ever suggested that insurance companies are philanthropic organisations and making money is one thing-profiteering and racketeering out of other peoples misfortune is an entirely different matter and car insurance is compulsory in most countries but have ever had the misfortune to effect a claim?I say misfortune as the insurer puts every obstacle in your way and then offers the claimant a derisory sum as compensation and you have to fight relentlessly to get remotely anywhere near the figure you thought you were insured for.

Peter Murray

Sep 11th 2012, 10:19

Dear Mr Joseph.E.Briiffa ,

Can you kindly elaborate on your suggestion by providing some definitive information as to what reading matter I should research about insurance ? As seemingly you command some expertise in this field-or think you do as none is forthcoming?

E Schembri

Sep 11th 2012, 12:25

Peter is right.

Insurance companies do more than just make money. Just take a look at their profits. It's more of an exploitation rather than a service.

Advert
Advert