Pacific Catastrophe Risk Insurance Company (PCRIC), a donor funded disaster risk insurance oganisation, has paid out of $45,000 to the Vatuvara Foundation (VF) following the impact of Tropical Cyclone (TC) Rae late last month.
Vatuvara Foundation holds a policy covering TC risk for coral reefs north of Lau, and the policy is designed to fund reef restoration and community livelihood support in the event of a natural disaster.
In a statement, PCRIC said a post-event loss calculation process was triggered when TC Rae tracked southwards across Lau last month.
Reask, a technology weather company and the official calculation agent, determined that a payout equivalent to 10 percent of the coverage limit was due.
It said within eight days of the cyclone’s passage, initiated the payout on March 3.
Vatuvara Foundation director Katy Miller acknowledged the efficient process by PCRIC.
“PCRIC has delivered entirely in accordance with the detail of our policy, there have been no complex processes or delays we’ve had to address,” Ms Miller said in the statement.
“Payment arrived within 14 days of the event occurring – it is so gratifying that in our time of need, we have such a reliable partner in our resilience endeavours.”
PCRIC chief executive Aholotu Palu acknowledged the company’s focus on designing insurance products that met client needs.
“PCRIC products were well matched to the needs of clients, this recent event acted to validate the policy design and related processes, ensuring the best possible outcome for clients,” Mr Palu said.
