Coode Island - 10 Year Anniversary
Nose Bleeds & Business Interruption
Of Earthquakes & Circuses
Speeding Fine & Business Interruption
Marine Claims & Crocodiles
Hot Coffee
Industrial Sabotage is Alive & Well
Break Out the Candles
Burnt Sandwiches
Beer Taste Test
Floating Casino Fire
Of Mice and Men
Falling Meteorites - What's Next?
Would you like "Fry's" with that?
Of Cockroach Bombs & Pilot Lights!
Feed the Birds Tuppence a Day!
Smoke and Fashion
Oh No - Not the Chocolate!
If You Ever Doubted Why Firemen Where Overalls
Fire Brigade Fire!
Something's Fishy in Lakes Entrance
Lady McMahon's Burning Boa
Aviva Insurance and its Weird Claims
Ushci the Angy Cow!
The Long Burn
Fire Prediction - Crystal Ball
Impact by Falling Cow!
Fire in a Coal Mine - Burning for 50 Years.
Indiana Jones & the Temple of Doom Claim
A Funny Thing Happened on the Way To ....
Nose Bleeds & Business Interruption
Who says Insurance Claims are boring?
A well-known production company was making a feature film which required several scenes to be shot in rugged bush land at the top of Mount Ben Lomond in Tasmania, Australia.
Due to the inaccessibility of the area all equipment, crew and actors had to be flown in and out by helicopter at considerable cost.
Unbeknown to all, the lead actor who has since appeared in many feature films, suffered from a medical condition causing constant nose bleeds at high altitudes.
Nose bleeds were not part of the scene and shooting had to be regularly postponed while doctors attended to the problem.
An additional cost was incurred to hire equipment, crew and actors to complete the filming.
Whoever thought nose bleeds could be the subject of a business interruption?
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Coode Island - 10 Year Anniversary
At approximately 2.17 pm on Wednesday 21 August 1991, a series of explosions and fire at Coode Island in Victoria, Australia caused extensive damage to plant and equipment, stock, and contents with chemicals spilling into the soil and gases escaping into the air. This necessitated the closure of the plant and evacuation of the immediate area. The fire sent thick black smoke over the Melbourne and metropolitan area and received extensive media attention.
The fire at Coode Island continues to fascinate the media.
An article appeared in the Herald Sun on 15 August 2001 reporting that the ten year anniversary of the fire fell on Tuesday 21 August 2001. It indicated that protesters initially intended to mark the occasion with a barbecue!
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Of Earthquakes & Circuses
Many years ago a well known national circus troupe was performing in Asia when a major earthquake hit.
The circus performers were considered national treasures and concerns for their safety increased with each after shock. They were evacuated to their home country as soon as flights could be arranged. Performances were cancelled and revenue lost.
Circus animals including horses, elephants, lions, etc remained in Asia and required ongoing care.
A claim proceeded for lost revenue and the increased cost of feeding animals until a safe passage home could be arranged.
We even need to know how much hay an elephant eats!
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Speeding Fines & Business Interruption
A fire recently occurred in a fixed speed camera. The potential for loss of speeding fine income from the date of the fire to the date the damaged camera was replaced would be an interesting Business Interruption claim. Believe it or not a nearby camera caught the fire brigade running a red light while they were racing to the scene. Does this represent a recoupment of income?
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Marine Claims & Crocodiles
In November 2002 two men on a small fishing charter in the Northern Territory were forced to jump into a crocodile infested river when their boat collided with a submerged log.
The marine claim for the boat damage was the furthest thought from their minds.
They were fortunate the crocodiles weren’t biting!
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Hot Coffee
It seems that coffee has taken a direct hit in recent times. On 3 October 2002 a fire severely damaged a warehouse operated by Gloria Jeans Coffee in Victoria.
On 7 April 2003 a fire also occurred in a Hudson’s Coffee shop in Melbourne.
Roasted coffee beans have always been popular, but this gives new meaning to hot coffee!
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Industrial Sabotage is Alive & Well
A developing orchid nursery in the Northern Territory in Australia was beginning to thrive when its water supply was contaminated. Not only did almost the entire retail stock die much of the germination stock was badly damaged. A significant loss of profit followed.
A similar situation affected a farmer who bred quails destined for exclusive Melbourne restaurants. His feed stock was contaminated causing many of the delicacies to fall off their perch and the breeding pairs to become feeble. Both resulted in insurance claims.
Industrial sabotage is alive and well!
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Break Out the Candles
On 28 September 2003 a storm-tossed tree branch hit Swiss power lines causing another line to overload knocking out all French transmission of power to Italy. Almost the whole country, other than Sardinia, was plummeted into darkness.
Some 110 trains containing 30,000 passengers were brought to a halt, flights were delayed and operating theatres, including one conducting a six hour liver transplant operation in Turin, were forced to rely on temporary generators. Even the Vatican had to amplify Pope John Paul II’s announcement of new cardinals using temporary generators.
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Burnt Sandwiches
It is becoming common to hear of terrorist threats closing airports or flights.
However, on 12 November 2003 the Cairns Airport domestic terminal was evacuated because of a burnt toasted sandwich
In deciding whether this interruption would fall for consideration under a property policy we immediately noted there would be damage - the
sandwich was clearly burned, however, would the faulty workmanship exclusion preclude a claim?
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Beer Taste Test
Outback Australia was drier than expected when the rear trailer of a road train carrying 2,640 cartons of beer caught fire between Bourke and Cobar in New South Wales, Australia on 6 April 2004.
Some 79,000 stubbies were destroyed.
It would have been necessary to conduct a stock take of the remaining stubbies to quantify the claim for the stock loss.
It may have also been necessary to conduct a taste test to determine whether the remaining beer was heat affected.
Hope the stock take was conducted before the taste test!
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Floating Casino Fire
Gamblers took a little more risk than anticipated when a fire broke out in the engine room of a gambling cruise ship called the SunCruz Casino just off the coast of Hollywood, Florida on 17 May 2004.
Eight rescue boats, two fire fighting tugs and a Coast Guard helicopter were sent to assist.
News footage showed people standing on the top deck, wearing life jackets. Thankfully no-one was injured.
The ship was towed back to port presumably nursing a claim for damaged property and lost gambling revenue.
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Of Mice and Men
The cause of a fire is often difficult to determine and sometimes attributed to intruders of the four-legged variety.
In late 2004/early 2005 several recent news reports indicated: -
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A rat nibbling at electrical wiring may have been responsible for a fire in the ceiling of a Hardware Store in Darwin, Northern Territory, Australia.
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A mouse with a similar taste for electrical cabling may have caused the fire which severely damaged production studios in Melbourne, Victoria, Australia.
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A burning rabbit may have been the cause of a fire which destroyed a 150 year old cricket club in England after its tail caught alight while groundsmen were burning branches!
Events such as these add a whole new meaning to pest control.
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Falling Meteorites - What's Next?
The chances of a claim arising from a falling meteorite may not be probable but is possible.
On 27 January 2005 an errant 4.5kg meteorite started fires which destroyed several hundred hectares of rice paddies in north west Cambodia.
Villagers reported that it sounded like a bomb exploding when the rock came crashing to earth.
The damage would have been much more significant if the celestial stone had collided into an industrial area.
A quick review of the Mark IV Industrial Special Risks policy did not reveal any exclusion which would prevent a claim while many of the defined event composite policies cover damage by space debris. Would a falling meteorite be classified as space debris?
Keep those hard hats handy!
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Would you like "Fry's" with that?
Life imitated an action movie in the city centre cinemas in Darwin, Northern Territory, Australia on 7 August 2004 when film goers were evacuated after the lobby filled with smoke.
Thanks to the prompt and sensible action of management no-one was injured.
However the cinema may have experienced an adverse affect on popcorn sales as well as movie takings as the manager, Andrew Fry, reported that the smoke originated from a fire in a popcorn machine.
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Of Cockroach Bombs & Pilot Lights!
News reports indicate that on 7 April 2005 firemen felt an explosion while sitting in their fire station in suburban Perth, Western Australia. Investigation revealed a fire in a neighbouring Thai Restaurant a couple of hundred metres away. It wasn’t the proximity to the fire station that made this fire odd it was the cause.
In an effort to fumigate the restaurant the owner allegedly activated some 36 cockroach bombs inside the building. The product releases chemicals into the air to kill pests such as fleas and cockroaches.
News reports suggest 8 bombs would have been sufficient.
Unfortunately a pilot light from an oven ignited the chemically charged air resulting in a fire and explosion. The back wall & front windows were blown out and the ceiling caved in.
Always read the manufacturers instructions!
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Feed the Birds Tuppence a Day!
Business can be interrupted for all sorts of reasons; some of which are insured and others that are not.
News reports indicate pesky pigeons in the Victoria Street Mall in Coburg, Victoria, Australia are annoying customers and scaring them away from neighbouring shops.
This has resulted in a loss of trade.
This is an example of a Business Interruption loss that is not insured. This is because the Business Interruption loss must flow from damage to property and this has not occurred.
The Material Damage proviso has not been satisfied.
Sounds like someone needs to stop feeding the birds. It’s costing more than Tuppence a Day!
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Smoke and Fashion
Australian Fashion Week in Melbourne in September 2006 started with the evacuation of the St Kilda Sea Baths because of smoke from a smoke machine. Three fire trucks attended this one.
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Oh No - Not the Chocolate
On 18 August 2006 in Kenosha, Wisconsin in the United States a vat of chocolate became contaminated when a worker spent 2 hrs in it only being released after it was thinned with cocoa butter!
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If You Ever Doubted Why Firemen Wear Overalls...
In Bowral, New South Wales, Australia on 2 April 2006 news reports indicted a man from a nudist colony set fire to a spider’s nest and badly burned his buttocks. He poured petrol in what he thought was a funnel web spider’s nest and lit a match. The fumes exploded. The helicopter rescue service reported: "the man’s lack of clothing probably contributed to the extent of his burns." and "the fate of the bunkered spider was unknown".
Then there was the nudist in West Palm Beach, United States, in March 2006 working on his recreational vehicle when the generator exploded.
If ever you doubted why firemen and mechanics wear overalls…..
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Fire Brigade Fire!
In January 2005 a Tokyo newspaper reported a fire in a fire station following a party to celebrate the end of a fire awareness promotional event. While the building was badly damaged we understand the brigade were quick to attend and extinguish the fire! We hope they had adequate insurance and had paid their fire services levy!
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Something's Fishy in Lakes Entrance
News reports indicate that on 9 January 2006 a foul smell wafted through Lakes Entrance in South- East Victoria, Australia.
Emergency services were called out and traced the heady stench to an upturned hull of a boat which was found to contain 1.5 tonnes of flathead. The boat overturned in the sea off the coast some time in the previous week.
The news report indicates that the rotting fish could not be immediately removed from the hull because of "insurance reasons".
Let’s hope the delay did not occur because some poor unfortunate soul had to count the rotting carcasses before the claim could proceed.
The words "stock reconciliation" take on a whole new meaning.
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Lady McMahon's Burning Boa
In June 2005 Hollywood actor, Michael Chiklis, reportedly saved Lady McMahon when she leaned back and a candle ignited her boa. On being alerted to the fire Chiklis grabbed the boa, ripped it off her and beat the fire out.
Thankfully Lady McMahon was unhurt. Press reports indicate that on asking her whether she was OK Chiklis advised she was unphased and informed him that it was only her boa that was on fire, not her.
Warning - Keep your boas away from candles.
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Aviva Insurance and its Weird Claims
Aviva Insurance has posted its top 10 wacky 2006 claims on its website. They include: -
“A swarm of bees flew down my chimney causing clouds of soot to fly all over the living room”
“A deer dived through my closed kitchen window.”
“My young granddaughter accidentally fed my false teeth to the dog who promptly chewed them to shreds before I could retrieve them.”
The previous year’s list topped these. It relayed a claim for a broken car windscreen which occurred when a frozen squirrel dropped out of a tree.
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Ushci the Angry Cow!
The residents of Hanover in Germany thought they had seen it all.... that was until they met Uschi the angry cow. Uschi was not only angry but was also pregnant when she escaped from her enclosure and ran amuck. The Charolais cow managed to allude police and fire fighters through residential streets for some three hours. Uschi became increasingly agitated as the chase progressed and began attacking anything in her path - fences, garden benches, etc, causing some AUD$41,000 worth of damage. Wonder whether anyone lodged any claims for this one?
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The Long Burn
We have come across some weird, wonderful and some times downright strange insurance news and usually the truth is much stranger than fiction. Take, for example, the news report on 12 September 2007 that advised the fire at the Gregadoo tip in southern New South Wales is expected to be extinguished shortly after burning for more than 2 years. The Wagga Wagga Council advised that 10 people had been working on this fire, caused by the illegal dumping of burning waste, for the past 6 months. Estimated extinguishment costs to date are around $1.35million.
Time to go and check those insurance policy Indemnity Periods.
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Fire Prediction
This odd spot is for all the fortune tellers. Don’t keep your crystal ball in the hot sun on the windowsill! In October 2007 news reports from southern England indicate that a crystal ball on a windowsill in the hot October sun refracted sunlight and caused curtains to burst into flames. The elderly occupant, a lady in her 60’s, was quite shocked. Fortunately the fire was extinguished and no personal injury was sustained. The fire brigade were requested to take the crystal ball away. A fire alarm is preferable to a crystal ball any day.
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Impact by Falling Cow!
Back in November 2007 news reports indicate that Mr & Mrs Everson had an unpleasant surprise while driving their minivan back to their hotel. Somewhere near Manson, Washington there was an enormous "bam" when a falling object struck the bonnet and smashed the windscreen. To their horror they discovered that the falling object was a cow which had missed its footing on a cliff some 61 metres above the road. The cow was found to weigh some 270 kilograms. Apart from shock the Eversons were unharmed but unfortunately the one year old heifer did not survive. The claim form would be worth framing: - "Impact by Falling Cow!"
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Fire in a Coal Mine - Not so Unusual
Back in November 2007 news reports indicate a fire in an underground coal mine which had been burning in the Terak coalfields in China for the past 50 years had finally been put out after a mammoth extinguishment effort over three years! The fire is thought to have consumed over 12.43m tonnes of coal and was responsible for emitting poisonous gases and causing roads and houses to subside in the Xinjiang Province. Surprisingly, spontaneous combustion of underground coal deposits is not unusual and there are fires which have been burning for centuries!
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Indiana Jones & The Temple of Doom Claim
How do you value a one-off, designer dress sequined with beads from the 1920's and 1930's? Not only were insurers faced with this conundrum but they may also have been searching through the clauses in the policy when they learned this Haute Couture was eaten by an elephant! Apparently "Dumbo" took a liking to the dress when it was left drying in a tree in one of the takes during the shooting of "Indiana Jones & the Temple of Doom". No-one could have anticipated this claim "A Hungry Elephant Ate the Heroine's Dress for Lunch!"
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A Funny Thing Happened On the Way To ...
… The crematorium.
On 30 July a fire broke out in a crematorium in Sydney.
It is believed a build up of heat in a roof cavity caused the fire and mourners were evacuated.
…The taxi rank.
In September London Black taxi cabs were ordered off the roads & licences were suspended after 12 fires in engines. There are 21,000 black cabs in London.
….The Tax Office.
On 4 October a middle-aged man walked into the Tax Office in Hong Kong and set it alight, however, he fled with his pants on fire. Should be an enlightening arrestment!
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