Abstract
December 2014 flooding in Kelantan river basin caused severe damage to economic and social infrastructure and dealt a serious blow to Kelantan state economies. Mitigation of flood disaster can be successful only when detailed knowledge is obtained about the vulnerability of the people, buildings, infrastructure and economic activities in a flood risk area. Therefore, to identify a community's flood risk, pre-disaster financial instrument will be introduced as non-structural mitigation measures know as flood insurance rate map. This instrument will be developed based on geospatial technology using satellite images, topographic surveys, cadastral map, type of community building such as residential or commercial and households’ income. Flood hazard maps and flood insurance rate map will provide the flood risk zone and flood insurance rate and premium coverage for the affected community. In additions it helps to determine the type of flood insurance coverage is needed since standard homeowners’ insurance doesn't cover flooding. Flood insurance rate map will provide affordable insurance for property owners, based on the lower the degree of risk state in flood hazard map, the lower the flood insurance premium. These insurance rate map are valuable to communities because it creates safer environments by reducing loss of life and decreasing property damage, allows individuals to minimize post-flood disaster disruptions and to recover quicker.
Highlights
High impact floods have become a virtually annual experience in Malaysia, yet flood insurance has remained a grossly neglected part of comprehensive integrated flood risk management
The demand for insurance is driven by an individual’s knowledge of potential risk, which will transfer the risk to an insurance company to effectively absorb and diversify the risk. To overcome this issue pre-disaster financial instrument will be introduced as non-structural mitigation measures know as flood hazard maps and flood insurance rate map [8,10,11]
Flood hazard maps and flood insurance rate map will provide the flood risk zone, level of vulnerability, household income and flood premium coverage for the affected community. In additions it m degree of risk state in flood hazard map, the lower the flood insurance premium. These predisaster financial instruments will reduce the socioeconomic impact of disasters by promoting the purchase and retention of risk insurance in general, and National Flood Insurance in particular after it be introduced as tools in land use planning process
Summary
High impact floods have become a virtually annual experience in Malaysia, yet flood insurance has remained a grossly neglected part of comprehensive integrated flood risk management. Many researchers believe that if insurance can represent the actual degree of risk in each policy and employ advocacy and mitigation programs, financial losses may be able to be reduced [3] In this way, insurance companies could represent high risk flood hazard areas with more expensive insurance premiums than lower risk flood hazard area. The demand for insurance is driven by an individual’s knowledge of potential risk, which will transfer the risk to an insurance company to effectively absorb and diversify the risk To overcome this issue pre-disaster financial instrument will be introduced as non-structural mitigation measures know as flood hazard maps and flood insurance rate map [8,10,11]. These predisaster financial instruments will reduce the socioeconomic impact of disasters by promoting the purchase and retention of risk insurance in general, and National Flood Insurance in particular after it be introduced as tools in land use planning process
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