Earthquake Insurance: Building code adherence

High intensity earthquakes are fast becoming commonplace around the world. For Pakistan, the lesson from Haiti and Chile is very clear.
Recall the Mother Natures wrath from the October 8, 2005 earthquake in Pakistan, when, in addition, to the priceless human costs, business and economic activities were disrupted in a big way in the affected areas.
Economic loss of the 2005-earthquake were as high as $5 billion - direct damages and indirect economic costs more than $2.3 billion, with reconstruction costs adding up to $2.65 billion, according to multilateral agencies.
Though at the moment, Chief Meteorologist of Pakistan Metrological Department, Muhammad Riaz says Karachi is not running the risk of a severe earthquake, imagine if such devastation hits the countrys urban cities in the years ahead. The chaos would be monumental.
Entrusted with risk mitigation and preparedness for natural disasters, National Disaster Management Authority was set up in 2007. For a first step it was the right move, but the country needs more, given the persistently growing number of earthquakes of late.
Since, one cannot control nature, being prepared for it is the only solution. Infrastructure and building development that strictly follows buildings codes is the responsibility of the citizens as much as of the government.
It is in the interest of the publics own safety to follow proper guidelines. For those living at or below the poverty line, the costs of implementing safety measures can outweigh the perceived benefits, and therefore many do not make use of the technology available for disaster prevention.
But somebody has to tell them that prevention is better than cure. One way to do that is to incorporate the knowledge of elementary disaster management, including that for earthquakes, in the curriculum of secondary schools.
Otherwise, if there is no preparation, economic aftershocks of the quakes can be even more pernicious. The more the destruction, the more will be the need for public spending on reconstruction, health care, education and pensions. Clearly, Pakistan does not have sufficient funds to meet any such calamity.
There is no doubt that big disasters typically result in heavy inflows from donor countries, agencies, and individuals alike. But that cannot offset the long lasting impact that disasters have on an ill-prepared economy.