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Reinsurance Management

arising out and directly occasioned by one
catastrophe".

b. The meaning of what constitutes one loss
occurrence will vary according to the type of
reinsurance and the nature of original business
reinsured. For catastrophes like riot, cyclone,
earthquake, hurricane or flood, the event could
last several days and it might be difficult to
distinguish the break between two
occurrences.

Hence an "hour's clause" is incorporated for a
precise definition of one event in respect of such
perils. The treaty may provide to limit the duration
and extent of any loss occurrence to 72
consecutive hours as regards a hurricane, typhoon,
wind storm, rainstorm, hailstorm, tornado,
earthquake, seaquake, tidal wave or volcanic
eruptions.

For example, the recovery in the following case

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