For Japan, 2024 began on a rough note. The Northern Coast of the Noto Peninsula was hit by a magnitude 7.5 earthquake. New Year’s Day witnessed severe shaking in Nanao and even a three-foot tsunami triggered by the earthquake.
As rescue efforts continue, snow complicates the situation. This is hindering relief operations but efforts are steadily progressing. Meanwhile, the aviation sector is grappling with the aftermath of a Japan Airlines (JAL) aircraft and Japanese Coast Guard plane collision.
This has prompted concerns about insurance claims and financial burdens.
It goes without saying that both buildings and people have been destroyed beyond repair by the earthquake. Hence, the first priority for rescue operations is to find people still stuck in buildings that have collapsed.
You can find troops of firefighters and police fighting through challenging terrain compounded by heavy snowfall. Landslides have already been reported, reaching an estimated 1,000 incidents in the hard-hit Noto Peninsula. This is making things difficult for relief teams as isolated places have become inaccessible.
About 18,000 households remain without electricity, while over 66,100 households face water shortages. Evacuation centers, housing 28,800 people, struggle with insufficient water, electricity, and heating. This has left its residents enduring harsh conditions and no updates from the outside world.
Initial aid efforts were meager, providing only a small cup of water and a single piece of bread to each person per day. However, as more aid arrives, some facilities can now offer hot meals and baths, providing a semblance of comfort.
The confirmed deaths are concentrated in Wajima, Suzu, and Anamizu, with additional casualties in four other towns. Hundreds are injured, and 1,390 homes are either destroyed or seriously damaged.
We are sure you remember the 2011 earthquake and tsunami that left Japan in shambles. This is notably the next most significant tsunami after the same. Thankfully, the tsunami warning soon got downgraded to an advisory and the earthquake didn’t result in any serious issues for Japan’s nuclear facilities.
As if overcoming a catastrophic earthquake wasn't difficult enough, the aviation industry too has its share of difficulties. Indian insurers are facing difficulties as they have to pay out Rs 33 crore. This is with regards to the crash involving the Japanese Coast Guard jet and the JAL aircraft.
Insurance broker Gallagher notes that even last year, the aviation insurance market has problems financially. This resulted in a 25% rise in aviation reinsurance rates. The Indian public sector General Insurance Corporation is expected to pay around Rs 18 crore.
An image of a fallen piggy bank with several coins fallen out of it.
Three other PSU general insurers like the Oriental Insurance Company (OIC) and National Insurance Agency (NIA) will be collectively contributing Rs 5 crore each. This initiative was designed to cover their liabilities in the JAL policy.
These dual challenges have greatly tested Japan’s resources and resilience. As the nation fights to recover, the focus now shifts to
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