Insurance for MT Princess Empress at risk due to lack of authority to operate -senators

Senators said on Tuesday that owners of the sunken MT Princess Empress may not be able to claim insurance money for the sinking as it was disclosed that the vessel had no authority to operate.

This information was disclosed by Senator Cynthia Villar during a Committee on Environment, Natural Resources, and Climate Change hearing on the Oriental Mindoro oil spill, quoting a Maritime Industry Authority (MARINA) incident report.

“There is a report of the MARINA which says, "[A]ccident report on the foundering and sinking of Princess Empress... the ship has no authority to operate in the form of an amendment to its certificate of public convenience (CPC) issued to RDC Reield Marine Services to operate MTKR Princess Empress in the domestic trade pursuant to the revised implementing rules and regulations of RA 9295,” read Villar.

The senator made the disclosure as RDC Reield Marine Services Vice President Fritzee Tee testified during the hearing that they were closely coordinating with their insurance firm on the claims.

“We will have a problem on that maybe," added Villar. "The MARINA and the Coast Guard will explain that they cannot claim from the insurance because they have no permit to operate. Kaya we should not wait for that anymore. They will have a problem with that… Don’t depend on something that will not come."

“Galing ako sa business, alam niyo ‘yung insurance company maghahanap ‘yan ng basis para hindi sila magbayad,” said the senator.

(I came from the business sector. You know that insurance companies will find a way to avoid paying claims.)

Senator Raffy Tulfo agreed with Villar, saying the shipping firm should have been honest about their insurance claim.

“From the very start, sinabi niyo sana na ‘Sensya na may problema. Wala palang permit to operate ‘yung barko namin kaya walang insurance na masisingil... Kaya tutulong kami kung anong pwede naming maitutulong sa abot ng aming makakaya,’" said Tulfo.

(From the very start, you should have said, "We're sorry, there's a problem. Turns out the ship did not have a permit to operate, so we can't claim insurance... We will just have to help the best we can.)

"[P]inaasa niyo si [governor] at nagpadala kayo ng lawyer doon para sabihin na kayo’y naguumpisa ng pagfa-file ng claim na alam niyo naman palang hindi kayo mababayaran. So manloloko din po kayo.”

(You raised the governor's expectations, and you sent a lawyer to say that you had started filing a claim, which you knew would not be paid. So, you are also a cheat.)

Tee did not respond to the senators.

Meanwhile, MARINA Administrator Hernani Fabia explained that the CPC issued to the firm should have been amended every time a new vessel was procured.

“’Yung RDC may pending application, which we are going to hear pa sana. May kulang na mga documents, so i-hear pa namin ‘yan. So hindi sila naissuehan agad,” Fabia said.

(There is a pending RDC application, and we were going to have hearings on it. The application lacked some documents, so we were going to hold hearings. That's why a CPC was not issued immediately.)

Fabia also said that the vessel should not have been allowed to sail without a CPC.

However, during Senator Francis Escudero's interpellation, it was revealed that the Princess Empress was able to sail nine times without the authority to operate.

On Monday, RDC Reield Marine Services apologized for the oil spill that affected the livelihoods and environment in Oriental Mindoro.

RDC Reield Marine Services said it was in contact with its insurance firm about possibly providing compensation for affected residents. — DVM, GMA Integrated News