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Your Dam Your Responsibility (PDF~1.2MB)

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6<br />

2<br />

2 Risks Posed by <strong>Dam</strong>s<br />

2.6 Consequence of Failure<br />

If your dam fails, the sudden release of water and debris could result in loss of life or<br />

injury, and damage to downstream properties. <strong>Dam</strong>ages could include other dams<br />

downstream, houses, buildings, livestock, roads, railways or interruption to public utilities<br />

such as electricity and telephone. In addition, there could be significant environmental<br />

damage. This can take the form of erosion of the waterway or gully and the loss of<br />

flora and fauna downstream, which may take considerable amount of time to recover, if<br />

recovery is possible.<br />

Licensing Authorities will determine the hazard category of dam proposals, and a<br />

construction licence may contain a condition that the dam is designed by a suitably<br />

qualified engineer according to acceptable and appropriate standards.<br />

PHOTO COURTESY OF SOUTHERN RURAL WATER<br />

Cascade effect of upper dam failing<br />

needs to be considered<br />

2.7 Insurance<br />

Insurance does not prevent failure; it merely provides you with the ability to manage<br />

financial risk.<br />

As an owner, you should look at a dam like any other asset. The dam is an asset like<br />

your house or motor vehicle. However, in certain respects, dams have some important<br />

differences. For example, with your house, your main concern about risks is likely to<br />

be the consequences of damage to that asset; with a dam, it is a matter of limiting the<br />

potential for the asset itself to cause damage. Therefore, there is a sense in which your<br />

dam is not only an asset but also a potential liability!<br />

Take a look in the direction that outflow from the dam would be expected to take if the<br />

dam fails. Is there anything that it could impact on? Remember that your dam’s failure<br />

could also trigger your neighbour’s dam to fail with subsequent damage downstream<br />

that you may be liable for!<br />

If this is a possibility, you should carefully consider the benefits of insurance.<br />

Be aware however, that like a car your dam must be kept in a good condition to be<br />

accepted for an insurance claim.

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