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CPA to get $1.6M from insurance providers
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Posted on Mar 25 2006
The Commonwealth Ports Authority stands to receive a total of $1.6 million in insurance claims arising from damage to its seaport facilities during the onslaught of Supertyphoon Chaba in 2004.
The CPA board has approved the settlement offer regarding the insurance claim. Of the $1.6 million the CPA will get, some $300,000 has already been paid.
CPA board members who were present in Thursday meeting at the Saipan seaport—acting chair Antonio Camacho, directors Barbara Yamada and Serafin Dela Cruz, and treasurer Benigno Fejeran—unanimously voted to accept the settlement offer.
As part of the settlement, the CPA will discharge Lloyds and certain London underwriters of liability under the insurance policy that covered seaport facilities on Saipan, Tinian and Rota when Chaba hit the islands and destroyed public infrastructure and private establishments.
In a letter to CPA executive director Lee Cabrera, Macleod Claims Management Ltd. said that the underwriters have agreed to increase the settlement offer to $1.6 million from the previous offer. The letter did not mention the amount of the previous settlement offer, but it was reportedly less than $1 million.
Chaba hit the Northern Marianas on Aug. 22, 2004, with 180mph winds that damaged public facilities and more than 2,000 homes. President Bush placed the islands under a disaster declaration that made available federal funds to help the CNMI recover from destruction.
