INHERENT DEFECTS INSURANCE

Abstract

The subject of structural failure is one of current interest here in Singapore, particularly after the collapse of the Hotel New World in March 1986 and the proceedings of the Commission of Inquiry appointed to investigate the causes of the collapse. This study basically concentrates on the application of the Inherent Defects Insurance in Singapore. A study into the history of this kind of insurance, which originated in France, shows its evolution for more than a century. With an idea of how this insurance operates in France, the author did a comparative study of this insurance in France and Singapore and analysed its application to the Singapore's construction industry. The results of the analysis show that most developers are not prepared to accept the Inherent Defects Insurance but owners, on the other hand, are generally keen to adopt it. With these diverse opinions from the parties that are directly affected by this insurance, no conclusion can yet be determined. Instead more time should be given to test it relevance to the local construction industry.