International claims management firm Crawford & Company has provided an update on operations in Indonesia, where a powerful 6.9 magnitude earthquake struck the islands of Lombok and Bali on Sunday.
According to Mike Campbell-Pitt, president for Asia at Crawford & Company, the company’s offices in Indonesia are now responding to claims and providing support to its clients. However, the full extent of insured damage is yet to be determined due to the situation on the ground changing rapidly.
“Early indications are that the majority of insured damage will be for commercial buildings including hotels and resorts in Lombok and to a lesser extent on the island of Bali,” said Campbell-Pitt. “The local tariff earthquake cover has a deductible of 2.5% of total sum insured which limits claims. Domestic earthquake cover is not widespread, so we do not expect many domestic claims. We are in close contact with corporate clients, reinsurers and brokers to provide support.”
The earthquake, which has left at least 98 people dead and 236 severely injured, occurred at 6:46pm local time, with an epicentre 12 miles southwest of East Lombok. The affected areas are popular tourist destinations, and the quake destroyed roads, flattened buildings, and knocked out power.
The situation has descended into chaos, News Corp Australia reported, with thousands of tourists stranded and looting for food and other resources taking place.
