CCMC’s insurance only covers fire-A A +A
Sunday, March 9, 2014
THE Cebu City Medical Center (CCMC) cannot file an insurance claim for the Oct. 15 earthquake that damaged its structure, which prompted the City Government to abandon the building.
The building is being demolished by the City so a new one can be built.
General Services Office (GSO) property custodian Lorna Logico said CCMC does not have earthquake coverage.
“Old buildings did not have earthquake coverage and the insurance was just renewed,” Logico said in a press briefing.
The City Council told then GSO chief Rolando Ardosa last year to file an insurance claim for the CCMC.
Ardosa said the building is insured for P7 million.
But since the building was damaged by an earthquake, the City cannot claim a single centavo.
Logico said old buildings only have basic coverage, which is for fire.
It wasn’t until year 2000 until the present that coverage became comprehensive to include calamities.
Insurance for old buildings like CCMC was automatically renewed and not upgraded.
But Logico assured that all Cebu City buildings now have comprehensive coverage.
The City Government paid close to P1.7 million this year for insurance premiums of 11 buildings.
There are still nine buildings that are up for renewal later this year.
Most costly premium
In the GSO’s list, there are 20 buildings worth a total of P470 million to be insured this year. This already includes the 11 that were insured in the first quarter of the year.
The most expensive premium is for the Cebu City Hall legislative building, at P623,343. The building is worth P140 million.
This is followed by the Pardo Public Market building at P623,342, even though the building is only worth about P28 million.
Older buildings may have more expensive premiums.
The cheapest premium is for the Carbon Public Market at P6,500. The building has an assessed value of P400,000.
Meanwhile, the CCMC demolition is ongoing and is expected to be finished within two to three months.
The area should be ground zero before the new building can start construction. (JGA)
Published in the Sun.Star Cebu newspaper on March 09, 2014.