By Kefiloe Kajane
Insurance company Alliance General Insurance, recently paid out M19 million following the flooding and damages to one of the Polihali diversion tunnels.
The tunnels are meant to divert the water of the Senqu River during the future construction of the Polihali Dam. They are to be excavated in advance of the main dam construction contract under Lesotho Highlands Development Water Authority (LHDA) construction of Polihali diversion tunnels.
The Alliance General Insurance head of claims, Amon Rupiya, confirmed the event and the quantum of the claim without giving many details explaining that the company’s philosophy is to pay claims swiftly no matter the size of the claim. He said for this one, the company settled with no strain on cash flows or delays.
“We paid out within four days of receiving the agreement of loss form from the insured. Generally, the market picked up losses that were more than M30 million, and it takes responsive insurance companies to settle the claims on time,” he explained.
The insurance company explained in a statement that on January 27 and 28 this year, Polihali diversion tunnel’s project site was hit by a severe atmospheric event.
It said the river overflow caused damages to the temporary and permanent construction works (cofferdams/berms protecting the shore has been overcome, the working area and the tunnels have been flooded), other than to pieces of machinery and equipment.
“Since the beginning of the night shift on January 27 this year, Senqu River flow was monitored due to continuous rain and then surveyed with instruments by the surveying team on duty as the water level rose. The water levels reached 1,923.30, which is considered flood warning Level 1 for the project, and there was the evacuation of the employees.
“The Senqu River, fed by the Khubelu River, which went into flooding, suddenly increased the level and instantly and overflowed the Senqu River crossing bridge (a temporary structure used to cross from the opposite shores, located before the inlet area). Senqu River water flooded intake and outlet portals working areas, site offices while part of the equipment and vehicles were submerged entirely and flown away.
“The shore protection berms were overtopped, and rockfill material eroded or washed away. No further production could be continued due to erosion of access road and damage to Senqu River crossing bridge. The intake & outlet have been filled with water and mud, critical pieces of machinery have been severely damaged or missing. In accordance with the measurements taken, the water reached the following maximum levels overtopping about 2.0 m, and the 20 years return period level,” the statement read.
Rupiya also mentioned the recent claims that happened on September 30 this year in Maputsoe where it was hit by an unusual phenomenon of the hail storm and ice.
He said the outlook for the market is projected to have damages of the same magnitude, and this is due to the effects of global warming.
“Such damages can affect production or bankrupt projects, it is essential to ensure that such projects, including completed projects, are insured by credible insurance companies like ours. The company is finalising most of the claims and expect to pay a total of M12 Million towards the lodged claims from 36 companies that were affected, ranging from supermarkets to manufacturers,” Rupiya said.
