Estimated claims from June 16 flood total $8m, of which $3.8m are for vehicle damage
Samuel Ee Business Times 20 Jul 10;
(SINGAPORE) While it is too early to assess last weekend's flood damage to vehicles and property, the signs are insurers may not have to pay out more than the $8 million in claims unleashed by water woes not long ago in June.
A spokesman for the General Insurance Association of Singapore (GIA) said yesterday it is premature to estimate losses for the latest flood on Saturday, July 17.
He did say, however, that estimated claims for property damage and business interruption caused by the earlier June 16 flood - which mainly affected the Orchard Road area - currently amount to $4.2 million. And estimated claims for vehicle damage from that flood are about $3.8 million.
They total up to $8 million. But the spokesman said: 'This is only an estimate as of now because more claims could be filed later.'
The GIA represents all general insurance companies in Singapore.
The spokesman also revealed the estimated claims from a flood that affected the Bukit Timah area on Nov 19, 2009 currently stand at about $4 million.
Estimated claims for property damage and business interruption during that downpour amount to $1.2 million for now, while estimated claims for vehicle damage have come to $2.9 million so far.
GIA president Derek Teo described the above claims submitted by GIA members as 'raw numbers'. 'The actual numbers will come in later when the repairs are done, but they should be quite close,' Mr Teo said.
As for Saturday morning's torrent, anecdotal evidence seems to suggest the losses may not exceed those suffered on June 16. Back then, a two-hour pre-dawn cloudburst drenched homes, shops and basement car-parks in the Bukit Timah, Upper Thomson and Telok Kurau areas.
In the latest incident, 'shophouses in low-lying areas in Upper Thomson were hit - not the more expensive shops in Orchard Road,' said a senior executive who declined to be named. 'I don't think it will be worse than last month's flooding. Maybe about the same.'
The owner of a mid-size insurance agency agreed, saying those who were washed out in June would have learned their lesson and been more alert during last weekend's incident.
He pointed out that because the latest heavy rain came down when people were asleep and most vehicles were parked, claims could rise.
'Still, it may not be as bad for insurers when all is said and done,' he said, explaining that generally, when a vehicle is under water there is a high chance it is a total loss.
'The insurer will compensate the owner with the car's market value,' he said. 'But every car also has a residual value in the form of COE and scrap rebate. So perhaps an insurer can still recover half of the claim paid out. It's not all good news but it's still a bit of good news among all that bad news.'
