Shipping firms involved in collision have insurance

CEBU, Philippines - The Maritime Industry Authority has finally confirmed that the two shipping companies involved in the collision August last year are covered with the required insurance.

MARINA-7 director Nannette Villamor-Dinopol said that passenger and cargo insu-rance are mandatory for the issuance of the Certificate of Public Convenience.

She said that both 2Go Group Inc., owner of the sunken M/V Saint Thomas Aquinas, and Philippine Span Asia Carrier Corp, formerly Sulpicio Lines which owned the M/V Sulpicio Express Siete, have CPC.

CPC is an authorization  is sued for the operation of public services such as a common carrier.

Dinopol, however, admitted that she is unsure whether or not the two firms are insured  under  Protection  and  Indemnity  (P and I) insurance which covers ship owners and operators for indeterminate risks and third-party liabilities encountered in their commercial operation. This type of insurance covers pollution and wreck damage.

 She explained that MARINA had made the P and I policy as mandatory before in adherence to “The Domestic Shipping Development Act of 2004” that gives authority to MARINA to require every ship operator to obtain other compulsory insurance coverage “necessary to adequately cover claims for damages.”

However, the circular on P and I policy has been suspended since March 2010 after MARINA issued a Cease and Desist Order.

MARINA-7 cited in its order that the reason of the suspension was that the circular  is still subject for review, modification and amendment by the Technical Working Group composed of stakeholders and Department of Transportation and Communications.

This means that shipping companies have the discretion whether or not to secure a P and I insurance, Dinopol said.

“(But) Pwede sila ma-compel mobayad kung naa gyo’y damage caused sa accident. The Department of Environment and Natural Resources will have an assessment which will be used kung naa ba gyo’y damage,” she added.

Dinopol reported the matter before the Provincial Board yesterday.

Cebu Coast Guard Commander Rodolfo Villajuan likewise believes that two shipping firms have the mandatory insurances.

“Vessels are not cleared to depart if they don’t have this Certificate of Compliance. Prior to this issuance of certificate, they must meet the necessary requirements plus the insurances,” he said.

 The PB invited MARINA-7, DENR-7, and the Philippine Coast Guard-Central Visayas to discuss the issue concerning the damage incurred by the oil spill that followed the ship collision to Cordova town. Cordova is claiming P127 million from the insurance companies of 2Go and PSACC.

Cordova Mayor Adelino Sitoy who spoke before the PB recalled the position of 2Go not to compensate for the damage until a liability as regard to the incident is established.

“The important thing here is naa man gyo’y environmental damage. Later kung kinsa gyud ang sad-an, it’s up to them to reimburse,” he said. — /FPL (FREEMAN)