$250M outstanding in Park Hotel fire claim Five co-insurers not satisfied with probe Stabroek News September 14, 2000 Five of the insurers of the Park Hotel, which was razed in the May 6, fire said yesterday that "sufficient and detailed" investigations had not been done for them to settle the outstanding $250 million claim by the Kissoon family. But insurance broker, Bishwa Panday has challenged this statement, accusing the companies of reneging on the agreement reached between himself and the adjuster appointed by those companies, Peter Rees-Watkins. The Guyana Trinidad Mutual Fire and Life Group of Companies (GTM) handed over a cheque for $132 million to the Kissoon family on Monday, representing part of the $382 million settlement arrived at between Panday and Rees-Watkins. However, the Hand-in-Hand Fire Insurance Company Ltd, Guyana Cooperative Insurance Inc, CLICO Life and General Insurance (SA) Ltd, North American Fire and General Insurance Company Ltd and Demerara Fire Insurance Company Ltd said they did not hold the same view as GTM, which was the lead insurer of the hotel. "...At a meeting the above mentioned co-insurers took a decision that sufficient and detailed investigations have not yet been completed and as such settlement of the claim is not yet imminent," the five said in a brief statement. Stabroek News understands that Rees-Watkins, the adjuster hired from Trinidad by the five companies to negotiate their claim, issued a report in which he said: "We are unaware of any issue on which the claim could be declined." Panday, in an invited comment, told this newspaper that it was unheard of in the recent history of insurance for a broker to arrive at a settlement with an adjuster and then have the participating insurance companies renege on the agreement. Panday opined that because of the rate war which has been taking place in the insurance community, the settlement arrived at-the largest in the history of Guyana in absolute terms-was difficult for the insurers to bite. "They can run but they can't hide," Panday said yesterday, expressing his surprise that after five months of negotiations and having arrived at a settlement, the insurers were now backing out. Panday said he signed an agreement with the adjuster for $382 million as settlement of the claim for $420 million and it was unheard of for insurance companies to turn around and question the settlement. An insurance source said the settlement figure had led to the five companies again questioning the origin of the fire, which was deemed unknown by the fire department. Stabroek News was told that the dissenting companies wanted the debris of the hotel tested, but the adjuster explained that too much time had elapsed and it would be futile to now do so. (GITANJALI SINGH) Follow the goings-on in Guyana in Guyana Today