In a series of meetings held yesterday, IC Commissioner Eduardo T. Malinis ordered Wellington Insurance Co., Development Insurance & Surety Corp., and Security Pacific Assurance Corp. to pay their bond claims or risk penalties including the suspension of their certificate of authority to operate (CA).
"They should pay the claims immediately and then go after their principal," Malinis ordered.
Security Pacific Assurance Corp. was ordered to pay claims due Rambi Development Corp. amounting to P20 million. Petroleum product distributor Rambi Development likewise has claims with Wellington Insurance Co. amounting to P15 million based on a bond worth P20 million.
It was learned that Security Pacific spread out the bond coverage as the amount involved was beyond their retention capacity. "Chop-chop ang ginawa nila para makuha ang Rambi Development," Malinis said. "They should have either placed a collateral or tapped a reinsurer when they reached their retention capacity."
Also ordered to settle their bond claims with Eastern Petroleum Corp. were Development Insurance & Surety Corp. for claims worth P155,000 and Wellington Insurance for bond claims worth P400,000.
Likewise, the IC ordered four insurance companies to settle their arrears with Subic Bay Distribution Inc. (SBDI) which are "due and payable" to the petroleum distributing firm. It also advised the insurers to hire an adjuster (Cunningham Toplis) to make an initial estimate of the total claims due SBDI and submit the report before the end of the month. – Ted Torres