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)