Omar Anderson, Gleaner Writer
THE NATIONAL Water Commission (NWC) is at odds with United General Insurance (UGI) Company Limited over what the Commission says is the company's slow processing of a $90 million Hurricane Ivan damage claim.
But UGI is disputing the NWC's claim, arguing that based on the agency's own valuation, the 400 water systems, were 'grossly underinsured'.
Carl McDowell, the Commission's risk manager, told The Gleaner this week that the agency submitted its $90 million claim from November last year for physical damage to the NWC systems. This was followed in August by another $63 million claim for business interruption.
UNACCEPTABLE OFFER
"Its been frustrating because they (UGI) came with an offer which was not acceptable," he stated. "Out of a claim for $90 million, they want to settle with $16 million." NWC has, however, accepted a provisional $10 million payment .
According to Mr. McDowell, UGI loss adjustors appeared to be moving slowly in settling the matter. He said NWC officials met with UGI loss adjustors two weeks ago to confer on the $63 million claim.
"We got nowhere and mostly because they weren't prepared; they hadn't looked at our files," the NWC risk manager told The Gleaner.
But UGI general manager Andrea Gordon-Martin, is disputing Mr. McDowell's story.
She told The Gleaner yesterday that there's uncertainty over the $90 million claim based on a recent valuation of the NWC water systems.
"The properties, based on a valuation report submitted, were grossly underinsured," she stated, adding that the average clause would therefore impact on the amount of money the NWC might receive.
VALUE OF PROPERTY
She said the value of the property at risk, that is, the value of the property when the loss was suffered, has to be first determined and compared with the sum insured, before a claim can be honoured.
In other words, the UGI general manager said if the insured sum was short by a particular amount, that same amount would be deducted from NWC's $90 million claim.
Mrs. Gordon-Martin added that because Hurricane Ivan damage was so extensive, it was difficult for UGI loss adjustors to visit the 14 parishes to verify the claim.
She further stated that UGI then asked the NWC to submit its latest valuation report.
"We (UGI) waived our right to have our adjustors do a valuation," Mrs. Gordon-Martin said. "(And) we are meeting to see if UGI is prepared to compromise," Mrs. Gordon-Martin stated.
Meanwhile, the UGI general manager told The Gleaner that her company is processing the $63 million claim for business interruption, as that claim was only submitted less than two months ago.
