Well established Regional Risk Consultant from Singapore – Mr Pooba Mahalingam was in Male, Maldives during the last week of December 2023 to share his technical knowledge on construction and project insurances to industry players in this island nation.

Three Maldivian insurance companies hosted the training program for their staff:

• Amana Takaful (Maldives) PLC

• Allied Insurance Company of Maldives Pvt. Ltd.

• Ceylinco Insurance Co Pvt Ltd

Back-ground on this technical subject:

As Maldives continues to develop, new construction projects are being launched and various new risks are seen in the market. This can be infrastructure, buildings, renewable energy plants etc. Not to mention the construction of new reclaimed islands and resorts- all of which will involve contractors where insurance requirements are part of the letter of award and contract. Even the bridge construction or building refurbishments work normally require insurance coverage.

Key projects identified in the Maldives region include ports, resorts, hotels and tourism related work.

In suburbs and larger islands like Hulmale II, new housing, services and road improvements schemes are already being developed.

Project Insurance requirements become an opportunity for Insurance companies to support the construction industry.

Underwriters and insurance players have to evaluate these risks and estimate the exposure. Insurance requirements have to be addressed. Clauses, endorsements and warranties have to included. Improper understanding of the Policy Coverage and Clauses may lead to large losses and million dollar claims. 

Typical site accidents/ occurrences:   

• Scaffolding collapse during concrete pour

• Temporary earth retaining sheet piles gave way

• Tower crane frame crumbles while lifting material

• Vibration and crack damage to neighbouring buildings 

• Fire damage at construction site

These are typical site incidents that are nightmares to builders and site personnel. It can be even worse if human lives are lost. In Singapore, the Nicoll Highway construction collapse in 2004 is one of the classic site incidents that is even spoken about by engineers until today. Earlier this year in March 2023, a sky scraper building under construction in Hong Kong caught fire. The fire that took more than12 hours to put off and damage cost millions of dollars. Both the incidents involve the construction risk – the C.A.R policy will be triggered and insurance companies will take conduct of this claim to evaluate the loss.

Contractors and builders would have to face the Authorities and even the media when such incidents take place. On site, project owners and contractors look to the contract and particularly the insurance coverage for compensation. 

Application of training:

To make their team members appreciate this very current and objective subject, a few Insurers collaborated with well-known Regional Risk Consultant, Ir Pooba Mahalingam from Singapore to undertake this workshop. A qualified engineer with risk and insurance experience, he has delivered training in the Asean region, Middle East and Africa. He also acts as a risk surveyor for insurers and reinsurers to deal with a variety of engineering and construction risks.

Meanwhile when asked about the training, Mr Pooba said, “This a very relevant and current subject that requires attention by Insurance personnel – either underwriters, marketing or claims personnel. We found the participants very interested and asked many questions during the sessions.”

Mr Pooba also added, “We hope our sharing based on our wide engineering and property insurance expertise from different regions will be useful for these Maldivian insurance staff. We received supporting words and compliments from the staff who attended the class.”