Barbados could receive US$8.5 million from the Caribbean Catastrophe Risk Insurance Facility (CCRIF) following the destruction wrought by Tropical Storm Tomas over the weekend.
Dr Simon Young, chief executive officer of Caribbean Risk Managers, the facility supervisor for CCRIF, told the DAILY NATION the loss was calculated by way of a model in which hazard levels (wind, storm surges and waves) were used as a proxy for losses.
According to preliminary calculations, this forms part of an estimated US$12.8 million hurricane coverage insurance payout for three eastern Caribbean states.
Initial information suggests the facility will also pay out US$3.2 million to St Lucia and US$1.1 million to St Vincent and the Grenadines.
Speaking from Washington, where he is based, Young said payment is dependent on the total amount of coverage a government buys and the deductible selected.
He noted that the facility was not intended to cover all the losses faced by affected states but to provide short-term liquidity to covered governments to fund both disaster response and basic Government functions.
Young said the payout would assist in any costs which could fall to governments including damage to schools and other government buildings, roads, uninsured houses and agricultural losses.
“Under the terms of CCRIF policies, a final loss and payout calculation will be undertaken on November 13, with the National Hurricane Centre data available at that time used as input to the loss models. Payouts will be made as soon thereafter as possible,” CCRIF said in a statement.
Since Tomas remained an active storm, it could further impact CCRIF-covered countries, the facility added.
Young explained that each country had an annual limit for payouts which could be reached in one event or over multiple events.
He said neither Barbados, St Lucia nor St Vincent and the Grenadines had reached their limit for this year, and were therefore covered for any other catastrophes.
