The Steel Corporation of the Philippines (SCP) has filed a civil case against five leading insurance companies for the continuing non-payment of the balance of its insurance claim in connection with the fire that destroyed its cold mill plant in Munting Tubig, Balayan, Batangas about six years ago.
Charged in court were Mafire Insular Insurance Corporation, Philippine Charter Insurance Corporation (now known as Charter Ping An insurance Corporation), Asia Insurance Phils. Corp, New India Assurance Co., Limited and Malayan Insurance Co., Inc) which until now refused to pay the balance of SCP’s insurance claims despite findings by international experts following two ocular inspections, which declared the fire to be accidental in nature.
SCP filed the case in Makati through its counsel, Balgo, Gumuru, Faller, Tan and Javier.
Court documents showed a fire razed the SCP plant in 2009 which destroyed the cold mill equipment worth $33.8 million. The accident caused business interruption losses amounting to $8 million.
Following the investigation conducted by the adjusters Crawford & Company Philippines Inc., BA Insight International Inc., with international forensic experts Forensic Services Inc., and International Recovery Services Inc., Standard Insurance Co., acting as part of the panel of insurers, recognized SCP’s claims and paid the company the amount of $5.025 last May of 2014.
The five other companies of the consortium, however, refused to pay the balance of the claims, prompting SCP to file a case in court.
SCP is a pioneering BOI-registered company and the only steel company that qualified under Republic Act No. 7103 (Iron & Steel Industry Act).
It is one of the companies owned by Philsteel Holdings Corporation which produces cold rolled steel which is the raw material for its innovative technology for galvanization called Galvalume that applies a protective zinc and aluminum coating to steel sheets to prevent rusting and extend the life of the roofing sheets.
Its Balayan, Batangas cold mill plant together with the rest of its manufacturing facility was valued at $ 216 million.
In a related move, SCP has already filed a complaint against the five insurance firms with the Insurance Corporation (IC) last May for the continued non-payment of the balance of its claims.
The company has asked IC to impose the insurance regulation Section 247 of the Insurance Code, as amended, citing “If the Commissioner is of the opinion upon examination of other evidence that any domestic or foreign insurance company is in an unsound condition, or that it has failed to comply with the provisions of law or regulations obligatory upon it ….the Commissioner is authorized to suspend or revoke all certificates of authority granted to such insurance company, its officers and agents, and no new business shall thereafter be done by such company or for such company by its agent in the Philippines while such suspension, revocation or disability continues or until its authority to do business is restored by the Commission.