Korean insurance firms refuse to pay fire claim

Korean insurance firms refuse to pay fire claim

JAKARTA (JP): Two Korean-affiliated insurance firms have
refused to pay US$5.85 million in an insurance fire claim from a
noted paint and chemical company, alleging that the latter faked
the time of a fire accident in October last year.

A lawyer representing the insurance firms PT Asuransi Hanjin
Korindo and PT Asuransi Samsung Tugu said on Wednesday that the
firms had a strong and valid reason to refuse the claim of PT
Inti Cellulose Utama Indonesia (ICI).

"PT ICI is claiming damages caused in a fire which (allegedly)
occurred three days before the insurance policy was issued by the
insurance firms," insurance lawyer Warsito Sanyoto told reporters
on Wednesday.

Representatives of PT ICI could not be reached for comment.

Warsito said that a huge fire, reportedly caused by a short
circuit, had burned down the factory in the Cikande village of
the Cikande district, Serang regency, West Java, on Oct. 24 last
year.

He said that following the fire, PT ICI managed to insure the
burned factory for one year with the two insurance firms on Oct.
27.

When reporters asked Warsito if the insurance firms had
conducted the necessary examination of the factory before
granting the insurance policy to PT ICI, Warsito admitted they
had not.

"The firms issued the insurance policy based on good faith
between the insurer and the insured," Warsito told reporters,
adding that PT ICI had also made the full premium payment of Rp 1
billion.

Suddenly, he said, PT ICI informed the insurance firms that
one day after the policy was issued, a huge fire had burned down
their factory.

"They later claimed their insurance money," Warsito added.

The insurance claim, he said, amounted to US$5.85 million,
comprising of US$50,000 for the factory building, US$5.15 million
for machinery, and the remaining US$650,000 for the stocks of raw
materials and finished products.

PT ICI later provided both insurance firms with reports from
the Cikande Police subprecinct and Cikande district head, Uus
Rukmantara, all stating that the fire occurred at 1:05 a.m. on
Oct. 28 last year.

"Both insurance firms then employed my firm's services to
investigate the matter this year. I found startling evidence,"
Warsito said.

Warsito said that he had his personnel interview the Cikande
police subprecinct officers, and Serang Police officers who had
arrived at the scene during the fire incident.

The entire Cikande and Serang police detectives forces, and
operational control forces, along with firemen from the local
fire department, came to the scene during the fire, on Oct. 24
last year, and not on Oct. 28 as reported by ICI, Warsito said.

The fire, which began at 3:50 p.m. on Oct. 24, was put out
three hours later that day.

"Therefore, it is our conclusion that the report provided by
PT ICI to my clients was obtained by fraudulent means," Warsito
told reporters, after handing over copies of an original police
report issued by West Java Police chief of detectives, Sr. Comr.
Sardjono.

The report issued by Sardjono, dated May 9 this year, stated
that the fire occurred on Oct. 24.

Warsito said that he then filed criminal charges against PT
ICI with the Serang Police on May 12 this year.

Serang Police will also question the Cikande Police chief
First. Insp. Supriyanto who allegedly issued the fake report
which stated that the fire occurred on Oct. 28, he said. (ylt)