Press Release Palu Earthquake and Surroundings

PRESS RELEASE

RELATED TO EARTHQUAKE IN THE PALU CITY AND AROUND

As we know on 28 September 2018 at 17.02 WIB an earthquake has occurred with a magnitude 7.4 Mw scale with a depth of 11 km with an earthquake source caused by the Palu-Koro activity. The earthquake caused tsunami waves, liquefaction and landslides in the affected areas of Palu City, Donggala Regency and other areas in Central Sulawesi and surrounding provinces.

Regarding the earthquake, the Indonesian General Insurance Association (AAUI) delivered several things:

  1. AAUI and all general insurance companies and reinsurance companies convey deep condolences to the people affected by the earthquake. Our prayers that the disaster may soon be over, and the impact of physical and non-physical losses caused can be overcome properly.
  2. A general insurance company that issues an insurance policy that guarantees the risk of an earthquake event will immediately take steps in the claim handling process in accordance with the liability of the Insurer. Until now the loss value is still awaiting claims reports from all insurance companies, where the numbers are still not final and will continue to grow because the identification and verification process is still in process. AAUI also coordinated with PT. Reasuransi MAIPARK Indonesia, which carried out a compilation of claims report data from insurance companies that analyzed the earthquake risk to MAIPARK.
  3. Based on a database of risk exposures recorded through earthquake risk sessions at MAIPARK, risk exposures (value of insured property) are on risk on 28 September 2018 in Palu City, Donggala Regency and Sigi Regency estimated at 753 building units or groups of buildings, with a coverage of around 9.16 trillion Rupiah (or 4 times the risk of being paid to MAIPARK) consisting of buildings, building contents and business losses.
  4. AAUI encourages general insurance companies members of AAUI to inventory earthquake impacts in the form of losses per line of insurance business. With field conditions that are still not conducive, it takes time to process and calculate potential claims. To facilitate coordination of claim handling, insurance companies are also expected to immediately carry out a professional claim handling process and if necessary provide a call center and claim handling post and pick up the ball to ease the burden of the affected community. AAUI calls on the Insured who has an earthquake insurance policy and experiences losses due to earthquake risk can immediately report the loss to the insurance company issuing insurance company.
  5. AAUI and all general insurance companies and reinsurance companies declare a form of empathy for the earthquake event, social action, donation assistance that will be distributed to the affected communities. AAUI is currently coordinating with various parties related to the distribution of aid and considering the current field conditions.

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