ISLAMABAD: National Insurance Company Limited (NICL) has repudiated fire claims of Pakistan Petroleum Limited (PPL) worth Rs 558 million as being non conformant with the policy and due to lack of substantiated evidence.
Official sources told Business Recorder that the company’s fire claims are related to previous years and not supported by the renowned surveyors.
The company’s claim K/F/2010 of Rs 205 million which was related to business interruption was repudiated as per recommendations of the surveyor M/s Naanjee & Co due to non-conformation with the policy parameters.
According to NICL, survey report received on Feb 3, 2017, does not indicate a turnover loss to PPL’s overall business.
However, property damage claim of Rs 231,528,777 has already been paid.
On a claim KF-06-2013 of Rs 24,583,201 NICL noted that machinery damage at Kandhkot claim was repudiated as per surveyor's recommendations due to non-conforming policy parameters.
The NICL maintained that fire incident was intimated after 10 months, adding that repair work could not be completed within 12 months.
Another fire claim KF-30-2013 of Rs 279,973,491 called Tuco-A (coercion element found in turbine) has also been rejected as per the recommendations of surveyor's and legal consultant's opinion due to non-conformation with the Insurance Policy Parameters.
The claim K/F-54/2012 of Rs 19,626,222 has been rejected due to non-provision of invoices / repair bills for Chachar Gas Field.
Another claim K/F-47/2015 of Rs 27,295,238 has been turned down due to non-conformation with insurance policy parameters as coverage of Sui Kashmore road does not fall in Insurance Policy.
NICL has also rejected claim of Rs 1,500,000 (Marine claims terrorism at Karachi Airport 2014) due to non-conforming policy parameters.
It was declared for insurance after six months delay of arrival and incident.
NICL has paid 22 claims of Rs 83,879,410 from Jan 1, 2020 to March 30, 2021. However, 21 claims of Rs 1,357,105,814 are outstanding as of March 30, 2021. Of these, 9 claims of Rs 1.356 billion are related to fire incidents.
One claim is under process for approval whereas survey reports of 8 claims are awaited.
The survey reports of miscellaneous 5 claims amounting to Rs 235,000 and two engineering claims of Rs 300,000 are awaited. Five motor claims Rs 570,814 are also under process.
This issue was placed before the National Assembly Standing Committee on Commerce on April 9, which forwarded it to the Public Accounts Committee (PAC).
Copyright Business Recorder, 2021
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