RARIK to review damage claims process following power outage in Northern Iceland

Following a significant power outage in Northern Iceland in early September, RARIK officials have announced plans to review their procedures for handling damage claims. The company now intends to manage these matters internally, ensuring a quicker resolution for residents affected by the outage.

Since the power failure, nearly 300 damage reports have been submitted from across Northern Iceland and as far as Borgarfjörður. Concerns were raised during a community meeting in Mývatnssveit at the end of October, where residents expressed dissatisfaction that damage claims were being processed by Landsnet and the insurance company Sjóvá, rather than RARIK itself. Given that the service was purchased from RARIK, residents believed the company should have taken charge of the claims process.

However, shortly thereafter, RARIK clarified that all damage claims would be handled directly by them in cooperation with their insurance partners, which signaled a shift in their approach.

Egill Jónasson, RARIK’s Director of Business Services, acknowledged the residents’ concerns. He stated that while directing claims to Landsnet was not a mistake, the company took note of the community’s clear expectations and will enhance their operational processes moving forward. “We heard at the community meeting that we should have taken this matter into our own hands right away. We will strengthen our procedures because we want to learn from this and improve,” he said.

Thus, residents of Mývatnssveit can expect more direct support from RARIK regarding the compensation process for damages incurred during the power outage.