Trans-Asia sues insurance firm

CEBU, Philippines - In order to compel the insurance company to pay the P70 million Trans-Asia Shipping Lines Inc. lost with the sinking of M/V Asia Malaysia, the shipping lines filed a civil case before the court.

The Trans-Asia through lawyer Dexter Viñan filed a civil case for sum of money and damages against the Philippine Fire (Philfire) and Marine Insurance Corporation and five others.

"As a result of defendant's utter bad faith and malice in unjustifiably, unreasonably denying payment or unlawfully refusing to pay plaintiff's plainly valid and just demand, plaintiff is constrained to initiate the instant suit for the protection of its interest," the complaint reads.

Other named defendants were Patrick Yap as president of Philfire, lawyer Ma. Belina Mariano as executive vice president, Virgilio Cruz as assistant vice president, lawyer Rozaire Ombao as manager, Mario Adoremos as manager-claims.

On July 31, 2011, the shipping lines said, while on voyage from Cebu City to Iloilo City, the M/V Asia Malaysia suddenly encountered strong winds and big waves causing it to sink near Calabazas Island Ajuy, Iloilo.

The shipping lines said they informed the insurance company through a formal letter and asked for the insurance claim. They protested against Philfire for "unlawfully" deducting P20 million, making the amount of settlement to P50 million.

Aside from it, the plaintiff alleged that Philfire violated the insurance policy after it stated that they would have to wait for the findings of the Board of Inquiry to determine the compensability of the claim.

Moreover, plaintiff said they sent a demand letter to Philfire for the payment of the insurance claim but the latter "continually refused to pay."

With that, the Trans-Asia filed an administrative complaint against the Philfire before the Insurance Commission which is still pending.

Meanwhile, the plaintiff said there was no evidence that M/V Asia Malaysia sank because of their negligence as what the Philfire alleged.

In fact, plaintiff said the M/V Asia Malaysia had all "valid existing safety and trading documents and certificated mostly issued by Marina and other government regulatory agencies."

To bolster its claim, the plaintiff said that before leaving Cebu port on July 30, 2011 the M/V Asia Malaysia was in good condition and was inspected by the Philippine Coast Guard.

"M/V Asia Malaysia sank due to perils of the sea," the complaint reads.

Aside from the P70 million insurance claim, the plaintiff asked for P1 million moral damages, P1 million exemplary damages, P500,000 nominal damages, P3 million litigation expenses and ten percent insurance proceeds by way of attorney's fees.  (FREEMAN)