21 OCTOBER, 2024

Prosthetic pirate legs, riverbank collapses, half a million jobs in AI and more

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As insurance experts in Kuala Lumpur we’re always on the look-out for news stories with an insurance angle. Here are some of them.

Nigerian Pirate Treated to a New Leg – Marine Insurance
A Nigerian pirate called Lucky Francis is living up to his name, a very lucky man. He was badly injured in a gunfight with Danish sailors three years ago, given asylum in Denmark, and is now being given a prosthetic leg funded by taxpayers.

The battle involved the Danish frigate Esbern Snare and the fight took place in the Gulf of Guinea. Four of Lucky’s less fortunate pirate friends were killed in the incident, and Lucky’s leg was so badly damaged he was taken to Denmark to have it amputated. While there he applied for and was given asylum. The offer of a new leg was made following a fierce legal battle played out in the Danish media.

The case caused a scandal because Denmark’s attitude to migration, asylum and piracy is usually tough. The Danish Prime Minister Mette Frederiksen says she cannot defend the controversial decision. Lucky didn’t even serve any jail time. Now he has an education plan, job counselling, and official help to become a decent Danish citizen.

And the insurance side to this complex story? Insurers might not be happy about it because it might set a precedent, encouraging more pirates and other criminals to seek asylum in Denmark through attacking ships at sea, which could ultimately also affect marine insurance claims.

Marine kidnap for ransom and hijacking are real risks for sea-goers, threatening people, vessels and assets. The insurance protects against financial losses arising from crew and vessels being illegally seized or detained for ransom, protecting ship owners against costs that don’t fall under other policies. Anything that makes piracy more likely – like Denmark’s unusually tolerant attitude to Lucky’s case – won’t be welcomed by marine insurers.

Riverbank Collapse – Motor Insurance and Flood Insurance
In mid-October long periods of very heavy rain caused the riverbank at Taman Lembah Maju in Ampang to collapse, damaging two vehicles. The Selangor Fire and Rescue Department said there were no injuries.

The fire fighters received a distress call at about 7.15pm and rushed to the scene to find that the ten metre riverbank had collapsed, leaving two parked cars at risk of falling into a deep drain. The matter is now with the Royal Malaysia Police and the Ampang Jaya Municipal Council, who are investigating.

The cars should be covered by vehicle insurance policies, all of which include flood risks. As heavy rain increases and floods become more common thanks to climate change, flood insurance is going to be more important than ever – and the underwriting for flood risks will become even more complicated as well as potentially more expensive. In some areas it might be impossible to cover floods in future.

Flooding Casualties Increase – Flood Insurance
Dramatic floods hit us hard in October, with a high number of victims. Perak saw thousands of people affected across four districts: Kerian, Kuala Kangsar, Hulu Perak, and Muallim, with many forced to shelter in relief centres. In Muallim there were at least 580 victims given shelter in special centres at Dewan Kg Batu 4, SK Kuala Slim, and SK Slim River. In Kuala Kangsar there were hundreds of victims sheltering in relief centres at SMK RLKT Lasah, SK Lasah, and Dewan Pandak Hamid, Bawong Orang Asli One Stop Centre in Sungai Siput.

The flooding impacted hundreds of people in Hulu Perak, who sheltered in the relief centres at SK Kerunai and SK Pahit, and in Kerian people sheltered in relief centres at SK Changkat Lobak and SK Parit Haji Aman.

Pahang suffered badly, with thousands sheltering across five relief centres. The region’s Social Welfare Department says people stayed safe at relief centres across Dewan SMK Seri Semantan, SK Desa Bakti, SK Lanchang, Balairaya Mempateh, and Masjid Kampung Bongsu.

Water levels at Sungai Mentiga and Pekan’s Chini Bridge stayed dangerously high and levels at Sungai Semantan and the Keretapi Mentakab Bridge also very high. Melaka didn’t escape, with hundreds sheltering from the waters. People from Kampung Kilang Berapi and Lubok Buaya stayed safe in four relief centres. And the story goes on and on, with thousands people right across the region displaced.

When risks change, insurance companies have to re-underwrite their cover based on the new facts and figures, and the latest flood predictions. This can lead to more expensive cover, new exclusions, and even flooding being withdrawn, not covered at all. In circumstances like that, governments are usually forced to step in to help affected people.

500,000 Jobs in AI for Malaysia – Employee Benefits Insurance
It’s good to know experts are predicting an estimated total of 500,000 AI-based jobs across all sorts of industries in Malaysia over the coming six years.

These new AI-based roles mean people will have to develop new skills through training and education in a jobs revolution that’s tipped to see an enormous 85 million new jobs worldwide. This means Malaysia needs to prioritise local talent to become a key global AI player.

Malaysia's first AI comprehensive certification programme has been released, provided by Digital Minister Gobind Singh Deo. And the collaboration between the SG TVET Group Berhad and the US’s Artificial Intelligence Institute should speed up AI adoption in our country, with ten respected AI innovators already offering guaranteed job placements.

Positioning Malaysia as a key player in the global AI landscape is a thrilling idea. But the skills shortage much the world faces along with us might prove a challenge. With the best people in high demand, we predict organisations will need to provide valuable employee incentives to keep the people they value loyal. And that means Employee Benefits Insurance will probably become more popular than ever.

The Recurring Sinkhole – Public Liability Insurance
There’s a sinkhole in Jalan 6/132, and it keeps bigger. No wonder people who live and work in Gasing Indah are worried. Maxwell Tower residents say someone first spotted the sinkhole in August and reported it to DBKL. The hole was patched up but quickly reappeared.

People living in the area are taking great care when driving past the hole, and the garbage collectors are having to take a different route to avoid making it even bigger. Some members of the public are driving against the traffic, risking lethal head-on collisions rather than get too close to the collapse. People are scared that the hole might open up and swallow them, like the tragic incident that killed an Indian tourist earlier this year.

Some say the road repair crew initially did a bad job, filling the hole with cement then adding tar in what’s being called a ‘shoddy’ repair. The issue has been going on for a year now and local people are getting impatient for the area to be excavated, the source of the hole to be found, proper repairs made and repaving completed.

Public liability insurance, held by those responsible for the road’s upkeep, will be helpful in case someone is injured or killed, or their property or belongings are damaged.

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