No fault, no pay

By: Peter L. Romanillos May 10,2014 - 07:43 AM

No conclusive findings on fatal collision of two ships in Mactan Channel eight months after the incident

We will not pay. The owner of the ill-fated ferry, MV St. Thomas Aquinas, which sank after colliding with a cargo ship off Lauis Ledge in August yesterday made this assertion as they presented their position on the P126 million claim for environmental damages of the municipal government of Cordova.

2GO area manager Calvin Rosellosa said their “liability on the incident must first be established” before their insurer, Pioneer Insurance and Surety Corp., would even consider the claim.

“From what I understand with our insurance provider, they are trying to establish our liability first before they would consider payment,” Rosellosa told reporters after emerging from a closed-door meeting with officials at the Cebu provincial capitol yesterday morning.

Cebu Gov. Hilario Davide III called the meeting to enable the contending parties to explain their positions and to prevent the issue from reaching the courts.

“We are trying to bring the parties together so that they would understand each other. The concern of the provincial government is on the environmental damage incurred by the incident and its impact to the livelihood of the people of Cordova,” the governor said.

Attending the meeting were Cordova Mayor Adelino Sitoy, representatives of 2GO and Pioneer Insurance and Surety Corp., and regional officials of the Department of Environment and Natural Resources (DENR).

Last February, Sitoy sent letters to 2GO, Philippine Span Asia Carrier Corp. (PSACC), the operator of the MV Sulpicio Express Siete,  and the insurance company and demanded P126 million in compensation for the damage wrought by a resulting  oil spill caused by the collision.

The MV St. Thomas Aquinas was carrying 120,000 liters of bunker fuel as well as 40,000 liters of diesel and lubricants at the time of the accident. The resulting oil spill spread to Lapu-Lapu City, Cordova and the coast of Talisay City and caused the destruction of hundreds of hectares of mangroves.

Liability

2GO’s Rosellosa said there has to be sufficient evidence which would prove their liability over the incident in order for Pioneer to consider acceding to Cordova’s compensation claim.
“For example, if one has a death insurance, there has to be a certificate to prove the death for the beneficiary to claim the benefits. That is how I understand their line of thinking,” he explained.

Results of the Special Board of Marine Inquiry (SBMI) and the Maritime Industry Authority (Marina), which could support  the claim, have yet to be released by authorities eight months after the incident.

Immaterial

But Sitoy said there is  no need to establish the  most culpable party   between the two shipping companies before the insurance could be released.

He explained that the municipal government is claiming  insurance with respect to the environmental damage brought by the spill, and not for the immediate victims of the incident.

“We can’t wait for the results of the investigation. What’s happening is they’re just pointing fingers at each other. The determination of fault is not necessary here because what we’re claiming is the insurance on environmental damage,” he told reporters.

“Who is at fault here is immaterial. Who are we protecting, the environment and the affected people? Or the insurance company?” Sitoy asked.

Meanwhile, Davide said he will schedule another  meeting with the concerned parties next month.

This time, he said representatives from the PSACC will be invited to explain their side.

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