MV St. Thomas Aquinas disaster, 2 shipping firms sans insurance?

CEBU, Philippines - Do any of the two shipping companies involved in the sinking of the MV St. Thomas Aquinas have marine insurance?

This is what Cordova Mayor Adelino Sitoy wants to know after 2GO Group Inc., owner of the Aquinas; and Philippine Span Asia Carrier Corp., owner of the MV Sulpicio Express Siete refused to divulge the names of their respective insurance companies.

Cordova town is claiming P127 million as compensation for the damage incurred in the mangroves and fishing communities by the oil spill that followed the collision between the two ships last August 16 that killed 81 people.

2GO earlier expressed its position not to compensate the environmental damaged since liability as regards to the collision has not been determined yet.

Cordova town Mayor Adelino Sitoy told representatives from 2GO during a meeting on Monday that they are not claiming from them but from the insurance companies that cover them.

PSACC was not represented during the said meeting.

Sitoy added that there is no need to determine who is at fault because the protection and indemnity insurance which shipping companies should have, as required by the law, should have already covered them for indeterminate risks and third-party liabilities encountered in the commercial operation.

He said that it is enough that there was environmental damage.

Third party or main risks covered are liabilities, expenses, and costs for loss of life, injury and illness of crew, passengers and other persons, cargo loss, shortage or damage, wreck removal, environmental pollution, among others.

Provincial Legal Officer Orvi Ortega also questioned 2GO why they cannot disclose their insurance company, but the representatives of 2GO still refused saying that they are not at liberty to divulge the name of their insurance company.

“We told the lawyers of 2GO that you cannot blame Cordova to entertain doubts because why do you refuse to divulge the name of your insurance company. What’s the big deal about the name? You cannot help but to doubt,” Ortega said.

Sitoy said his town sent a letter to PSACC and raised their concern regarding the claim for environmental damage but received no response.

 This led Sitoy to question whether the two companies had insurance coverage. He said that if the concerned shipping companies go on refusing to divulge their insurance companies and pay the damage, he will elevate the matter to court.

“So maybe they were not covered (by insurance), but this is compulsory coverage for all vessels. Sa korte we can seek the disclosure as to what companies are they,” Sitoy added.

 The concerned parties will meet on June 25 to settle the issue.

A source who refused to be named described the question of Sitoy as unfounded.

He said that it is impossible for 2GO not to be covered by any insurance since it has an International Safety Management certification.

 An ISM certification shows that you can manage shipboard risks at sea effectively and avoid harm to the environment.

He added that there were personnel from International Tanker Owners Pollution Federation, a non-profit organization established to respond to marine spills of oil, chemicals and other hazardous substances, who helped in the coastal clean-up in Cordova town last year.

 â€œThe fact that there were these people who came from another country to help sa coastal clean-up, I believe covered gyud ni sila og insurance. Dako gud na kaayo magasto nang paglimpyo ato. So maybe gisugo gyud to sila sa insurance company nila,” he said in a phone interview.

 MARINA has not yet issued a resolution as to who was at fault in the incident.

The amount claimed by Cordova from   both companies reportedly covers the affected sectors in Cordova such as the fisherfolks at P78.6 million.

This include fisherfolks in the barangays of Alegria (P5.8 million), Bangbang (P10.77 million), Buagsong (P5.58 million), Catarman (P8.4 million), Cogon (P3.9 million), Dapitan (P1.6 million), Day-as (P8.4 million), Gabi (P1.05 million), Gilutongan (P6.3 million), Ibabao (P4.2 million), Pilipog (P7.7 million), Poblacion (P9.09 million), and San Miguel (P5.6 million).

Apart from the fisherfolks, the damage also affected vendors at P1.38 million, livelihood projects at P5.1 million, and mangrove forests at P41.7 million. —/BRP (FREEMAN)