Previous Story
CPA faces increase in insurance premiums
|
Posted on Oct 27 2004
The Commonwealth Ports Authority is facing a 26-percent increase in its insurance premium, apparently as result of its claims over typhoon-related damage caused to CNMI seaports.
CPA comptroller George Palican said that CPA’s insurance for fiscal year 2005 will reach $1.44 million, a significant increase from the $1.15 million that the ports authority paid in FY2004.
“At the time that we were renewing our insurance policy, the claims were also coming in. It kind of affected the premium,” Palican said.
Lloyd’s, a London-based consortium, is currently providing insurance services to the CNMI’s airports and seaports.
CPA data showed that the seaports posted the biggest increase in insurance premium at 71 percent. From only $479,295 in FY2004, the premium for the Saipan, Tinian, and Rota docks jumped to $820,058.
CPA executive director Carlos Salas said that the ports authority has asked Lloyd’s for a total of $9.4 million for repair of the Rota and Tinian airports, which suffered structural damage due to typhoons Tingting and Chaba.
Salas explained that only $1 million of this amount—the portion not covered by the insurance policy—could be covered by the Federal Emergency Management Agency. Ports repair, he said, is the biggest project for FEMA in the Northern Marianas.
Lloyd’s, however, is offering to settle only $3 million of the $8.4-million balance. “We have asked them to reconsider. $3 million will not bring ports to pre-typhoon conditions,” Salas said.
The premium for the airport also increased slightly, from $200,000 in FY2004 to $210,000 in FY2005.
Meanwhile, the premium for CPA property has declined from $396,000 last year to $384,750 this year.
CPA’s comprehensive insurance policy also covers the directors and officers, CPA as an entity, commercial vehicles, excess automobile, crime insurance, and money and security.
