…Insurance companies face record claims in Lekki, VI
As the residents of Ajah, Lekki, Victoria Island and Ikoyi in Lagos State continue to count their losses following the Saturday flooding of the areas, the state government has said it is building a retention pond to assist in containing flooding in the state.
The Commissioner for the Environment, Dr Babatunde Adejare, stated this on Monday.
Adejare said a retention pond was currently being built at the Sangotedo area of Lagos State as a form of rainfall harvesting to serve as a reservoir for storm water at the peak of the rainy season for onward release into the Okota River after the rains subsided.
Adejare said, “This retention pond is essential as Lagos in recent times has been experiencing flash flooding due to the rise in the sea level and persistent rainfall.
“Flooding all over the world is rated as the second biggest natural disasters. We will find a lasting solution to the issue of flooding in Lagos.
“Lagos has experienced 475mm of rainfall in the last seven days; the rain of July 8, which was 178mm was more than six months of rainfall in the city of California, USA.”
He further stated that the government had resolved to be more stringent in the campaign against dumping of refuse in canals and drains and was ready to enforce physical planning laws.
He attributed the Saturday flooding to the high tide of the lagoon, persistent rainfall and high volume of storm water, and consequent back flow from the lagoon to the drains instead of the drains discharge into the lagoon.
Adejare stated that the retention pond was part of the state government’s response to flooding, in addition to the existence of about 202 primary channels that served as storage and drains for storm water.
Journalists also gathered that insurance companies might face record claims following the flooding.
According to findings by our correspondents, owners of houses and property affected by the flooding are preparing documents to file huge claims against their insurance companies.
This, it was learnt, would cost the insurance sector huge losses arising from payment of record claims.
Our correspondent gathered that most of the houses and possessions in the highbrow areas of Lekki, Victoria Island and Ikoyi had been insured by their owners, who are mostly high net-worth individuals.
Economic and financial analysts could not put a figure to the amount in claims the insurance sectors would likely face from the unfortunate development when contacted by our correspondents on Monday.
They, however, said the impact would be felt significantly by the insurance sector.
Remarking on the likely impact of the development on the insurance sector, the Managing Director, Cowry Asset Management Limited, Mr. Johnson Chukwu, said, “Houses in Victoria Island, Lekki, Ikoyi have household insurance cover. Household insurance is one of the compulsory insurance policies. The insurance sector will record very huge claims. I cannot put a figure now because it will be too early to do that, but certainly it will be huge.”
Analysts said the flood did not hamper banking and business operations because it happened over the weekend.
They, however, said a few companies, whose business premises were affected, might face little disruptions.
A source at the state fire service told journalists that one of the banks on the Lagos Island, which consulted its service, was advised to get sucking pipes to drain the water on its premises.
On Twitter, Nigerians are still recounting their losses, as a driver claimed that he spent about N1m on the repairs of his car damaged by the flood.