Mud Volcano in Sidorarjo, East Java, Indonesia

On 29 May 2006 an exploratory gas well allegedly pierced a layer of rock beneath the surface of the Sidorarjo district of East Java in Indonesia.  This allowed hot, high pressure water to escape.  As the water rushed to the surface it mixed with soil and was expelled as mud.

Mud volcanoes can occur naturally but reports suggest this event may be the result of human intervention. 

Mud Volcano

Some eight months after the eruption began the mud had dispersed over an area some 4 kilometres in diameter covering residential, farm and industrial land.  In May 2007 it was reported to have covered some 700 hectares of land. Some experts suggest the mud flow could continue for centuries! 

Reports indicate the event may leave in excess of 43,000 people homeless.As at June 2007 the damage was estimated at AUD$3.5 billion. 

If such an event occurred in Australia we wonder whether insurance cover would be available.  Like all losses, cause would need to be identified.  Could the loss be classified as water damage? 

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Author

Published with permission of Claim Solutions Pty Ltd 

Insurance Policy

Country: - Indonesia

Policy Description: - Unnown 

Insurer: - Unknown

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