PHILIPSBURG–National General Insurance Corporation NV NAGICO said Tuesday it considered it pertinent to set the record straight and dispel the negative perception that the insurance company had not been in agreement with paying a settlement with Pasanggrahan boutique hotel in Philipsburg for damage caused by Hurricane Irma in September 2017.
“NAGICO was fully prepared to make payment of the sum calculated by the adjuster before the court proceedings began. NAGICO’s contention was not the payment, but to whom the payment should be made out,” the insurance company stated.
In the injunction procedure between NAGICO and Pasanggrahan hotel, the Court ruled on Friday, February 1, that NAGICO should pay the amount of US $314,712.
In a reaction to the verdict, NAGICO stated that the Court had recognised and ruled in favour of NAGICO’s position that the cheque in the settlement claim should be made out to the beneficiary of the insurance policy, which is mortgage holder OBNA Bank, and not to Pasanggrahan.
“NAGICO was not ordered to pay to Pasanggrahan directly but to OBNA $314,712, an amount which was calculated by an independent adjuster as compensation for the damage to their new building, and to which Pasanggrahan provided no feedback.
“NAGICO was ordered to pay ‘in accordance with the beneficiary clause,’ in other words, to the beneficiary of the policy, being OBNA Bank. This was exactly what NAGICO wanted to do from the start and what Pasanggrahan had tried to prevent,” the insurer stated.
According to NAGICO, the injunction procedure initiated by Pasanggrahan had the sole purpose of preventing the insurance pay-out being made to the mortgage holder.
NAGICO’s position that the old wing of Pasanggrahan was insured for fire only, and not for hurricane damage, was confirmed by the court, based on the fact that the description of the old wing on the policy schedule literally included the words “Fire Only.”
“The main argument of Pasanggrahan’s attorney was that the old wing was covered for hurricane damage too. Pasanggrahan’s attorney maintained this clearly false statement, even after being confronted with a signed and initialled change form by the operators themselves asking for the coverage of the old building to be changed to ‘Fire Only.’
“The Court of First Instance threw out Pasanggrahan’s position and sided with NAGICO on this matter. Pasanggrahan had an insurance broker who advised them and assisted them with the applications and change forms,” NAGICO stated.
According to NAGICO, Pasanggrahan started the injunction procedure about an advance payment without requesting an advance payment first.
“Pasanggrahan had even rejected a previous offer for an advance payment from NAGICO in December 2017. Despite numerous correspondences between NAGICO and Pasanggrahan, the hotel never asked for an advance payment again.
“So, based on the fact that NAGICO had not been formally put on notice, and the flawed arguments about the old building being covered for hurricane damage, the Court refused to order NAGICO to pay Pasanggrahan’s court fees of NAf. 6,100 and the bailiff cost,” the insurance company stated.
Source: The Daily Herald https://www.thedailyherald.sx/islands/84997-nagico-wants-to-set-record-straight-on-pasanggrahan-case
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