LESSON LEARN FROM THE PARIAMAN EARTHQUAKE, SEPTEMBER 30TH, 2009
Indonesia is a natural disaster prone country, i.e. earthquake and volcanic eruption. Indonesia is a maritime continent located on the Southeastern part of East-South Eurasian Plate adjacent to the Indian Ocean – Australian Plate. On the east side, it is contiguous with the Philippine Plate and Pacific Plate. By physiographic setting, the Western Area of Indonesia is a part of the Sunda Shelves, and on the Eastern area is a part of Sahul Shelves. Both shelves are separated by Deep Sea Basin and arc of islands which are very complex. As a consequence of this tectonic structure, there are volcanoes as a part of “the Pacific Ring of Fire”, big faults, and of course earthquakes as a part of earth dynamic resulting increase of loss due to natural disaster risk.
Looking at claims for the last 5 years as recorded by MAIPARK Claim Department, the biggest claim was for the West Sumatra earthquake on September 30th, 2009 (Pariaman Event, 30.09.09) with magnitude 7.6 Richter scale.
As published in the 13th Edition of “WASPADA” bulletin, the “Economic Loss” reaches IDR 23 trillion with casualties more than 1,100.
Refer to MAIPARK Claim Department’s record; Pariaman Event Claim that has been reported by the Ceding Companies has reach 3,609 files with total claim of IDR 1,212,340,765,291.02. As for today, 2,119 claims have been paid and 490 claims are still in the process while the rest of 460 claims were withdrawn due to under policy deductible or no further claim from the insured.
The highest claim was from “Commercial” occupation (i.e. office, store, ruko (Shophouse) , BTS tower, University, Warehouse, Shopping Centre, Showroom, Hospital, Hotel, Restaurant, etc.) amounting IDR 1,078,177,360,118.76 or 88.93 % of total claim.
Claim amount from other occupation as below:
Residential : IDR 102,013,681,567.47 (8.42 % of total claim value)
Industrial : IDR 31,991,269,746.81 (2.64 % of total claim value)
Agriculture : IDR 158,453,857.97 (0.01 % of total claim value)
We want to highlight some important notes and lessons learn that had been mentioned in our bulletin “WASPADA” 13th Edition February 2010:
Building standards and building codes have not been properly applied. Building inspection is stil weak and un-clear and moreover there is no sanction whatsover.
Seismic Micro Zonation followed by a land use policy (Spatial Planning) is absolutely necessary. In fact, this has never been done in Indonesia. The price we paid and had to be paid in the future would be very high.
Periodical review of Earthquake Tariff is necessary.
The importance of “Catastrophe Modeling”.
An appropriate and sufficient reinsurance program is required.
Review for sufficient sum insured to avoid under insurance in case of claim.
