Grant Gatland

This briefing summarises the key themes and information presented by Grant Gatland during a FESA Zoom meeting focused on lightning strike and power surge events. The presentation aimed to educate FESA members on the differences between these events, the types of damage they cause, methods for validating claims, common myths, and the complexities involved in assessing related losses. Gatland drew upon his extensive experience in investigating technical loss events for the insurance industry. A significant emphasis was placed on identifying genuine lightning or power surge damage versus alternative causes, including potential fraudulent claims.

Key Themes and Important Ideas/Facts:

1. Importance for Insurers:

● The primary driver for understanding the nuances between lightning strikes and

power surges is for accurate validation of insurance claims.

● Distinguishing the cause of damage is crucial for determining policy coverage, as

some policies may exclude power surge damage while covering lightning strikes.

● The financial implications can be substantial.

2. Defining Lightning and Power Surges:

● Lightning: Described as a giant spark that occurs between charged regions in

the atmosphere (clouds, air, and ground). It involves a stepped leader of negative

charges meeting a streamer of positive charges from the ground, resulting in a

high-current discharge (ranging from 5,000 to 200,000 amps).

● Power Surge: Primarily defined as a voltage spike" that can be caused by nearby

lightning (through inductive coupling) or other events like transformer failures.

Gatland clarified that a power surge isn’t typically just an increase in current; it

requires a voltage increase.

3. Differentiating Damage:

● Lightning Strike (Direct): Causes intense heat and current, potentially leading to

physical damage like trees being blown apart, brickwork fracturing, and burn

patterns along the current path.

● Validation involves looking for a path to earth" from the point of impact, although

this isn’t always obvious.

● Small pinhole-type damage" can occur on metal objects.

● Power Surge (Inductive Coupling from Lightning): Large magnetic fields

produced by a nearby lightning strike can inductively transfer energy and induce

voltages into other conductors," particularly long runs of low-voltage wiring (e.g.,

telecommunications, security systems).

● Damage often manifests as a failure of connected equipment due to high voltage

spikes, potentially affecting multiple devices but not always.

● A key indicator is damage not originating from the power supply side of the circuit

but directly impacting the low-voltage wiring.

● Physical burning damage is less common; instead, components like chips may blow apart without prior heating marks.

● Power Surge (Other Causes): While the presentation focused on lightning-

induced surges, Gatland briefly mentioned transformer failures as another

potential cause, typically resulting in a sustained voltage increase rather than a

rapid spike.

4. Common Myths Debunked:

● Lightning will always cause a circuit breaker to trip."

● Lightning will always leave a boom hack behind on electronic components.

● If one item is damaged and others are saved, then it should be a power surge

rather than lightning."

● Lightning doesn’t strike twice.(Gatland highlighted Kuala Lumpur International

Tower as a location frequently struck).

●Equipment damaged by lightning so it can't be repaired or if it is repaired, it won’t

be reliable.

●impossible to distinguish between lightning and power sage."

5. Latent Damage:

The concept of latent damage from lightning (failure occurring weeks or months after an

event with no immediate signs) is generally not supported by Gatlands experience.

If damage is going to occur, it usually will develop within a matter of days and not

outside about a month or so.

6. Equipment Vulnerability:

● Network and telecommunications equipment, AC equipment on rooftops, long-

running low-voltage cables, fire alarm systems, elevators, and security camera/card

access systems are particularly vulnerable to both direct lightning strikes and

inductively coupled power surges.

● Power supplies often have built-in protection (Metal Oxide Varistors - MOVs)

against typical power surges but may not withstand direct or severe lightning-

induced surges.

● High-voltage power transmission networks have lightning arrestors to protect

their infrastructure.

7. Prevention and Protection:

● Lightning protection systems (lightning rods, earthing) are primarily designed to

prevent structural damage to buildings by providing a path to the ground. They

may not prevent damage to internal equipment from induced surges.

● Surge protectors at the power supply level can offer protection against voltage

increases and milder power surges but may not be effective against extreme

lightning-induced spikes.

● Building grounding systems (multiple earth neutral - MEN) is primarily for safety

(tripping circuit breakers in fault conditions) and not for diverting lightning strikes.

8. Fraudulent Claims:

● Gatland presented case studies illustrating potential fraudulent claim attempts,

where damage appeared to be caused by deliberate heat application (e.g., with a

cigarette lighter) to mimic electrical failure rather than a lightning or power surge

event.

● Close examination of damage patterns, such as the melting of plastic components

without corresponding electrical failure indicators, can raise suspicion.

9. Tools for Validation:

● Online lightning detection services (Gatland mentioned TOA as a provider) can

provide historical data on lightning strikes in a specific area, helping to verify if a

lightning event occurred at the claimed time and location.

● Analysis of the proximity and intensity of recorded strikes is crucial in assessing the

plausibility of a lightning-related claim.

Quotes:

● A power surge is really another word for a voltage spike." - Grant Gatland

clarifies the definition of a power surge.

● Latent damage from lightning - It's seldom something that occurs and what we

find is that if it is going to occur, it usually will develop within a matter of days and

not outside about a month or so." - Grant Gatland on the improbability of long-

term latent damage.

Conclusion:

The presentation provided valuable insights for engineers dealing with lightning strikes and power surge events. He effectively differentiated between the causes and types of damage associated with each, highlighted common misconceptions, and emphasised the importance of thorough investigation and the use of available tools for investigation. The discussion also touched upon the potential for fraudulent claims, urging vigilance in assessing damage patterns. Understanding these distinctions is critical for accurate assessment to ensure the proper outcomes for both insurers and policyholders.