Paramount claims Deli Crunch broke norms
() - September 5, 2006 - 12:00am
Paramount Life and General Insurance Corp. has argued that Deli Crunch Biscuit Corp. did not inform them that it tapped the services of two other non-life inisurance companies, "a clearly stated and widely known violation in insurance practice which calls for forfeiture of all benefits under the policy."

The composite life and non-life insurance firms also stressed in a letter sent to its business partners, policyholders, staff and agency force that Deli Crunch failed to show sufficient proof of loss and "has submitted documents that do not measure up to tests of regularity applied in proper claims evaluation."

George T. Tiu lamented that instead of bringing the issue in a proper forum, Deli Crunch opted "to wage a biased and unfair fight against Paramount."

Field reports from the southern Philippines likewise indicate that competitiors unfairly and underhandedly spread rumors versus Paramount.

Meanwhile, the Insurance Commission (IC) said that they have issued a summons for Paramount (formerly Paramount Union Insurance Corp.) to file its response against the complaint filed by Deli Crunch.

IC officials revealed that the original complaint was muddled when Great Wall Commercial, a supplier of Deli Crunch, wanted Paramount to pay them first before the insurer would pay its claims with Deli Crunch.

Since it was an unusual claim, the IC dropped the complaint. Deli Crunch subsquently filed another complaint with the commission last month.

"The case is still pending with the IC, and we are already filing our answer to the summons," Edilberto A. Casino, Paramount managing director for non-life operations said. "It is unfortunate that some of our colleagues in the industry are unduly taking advantage, and destroying our name."

Deli Crunch applied and was issued a one-year fire insurance policy by Paramount in October 27, 2003. The fire that destroyed the manufacturing plant of Deli Crunch occured in April 26, 2004.

When Deli Crunch filed claims, it was discovered that the insured had other insurance policies with Malayan Insurance Co. Inc. and Philippine Charter Insurance Corp., in clear violation of industry practice. Paramount tapped the services of adjuster Crawford and Co. Philippines Inc.

CRAWFORD AND CO CRUNCH DELI DELI CRUNCH DELI CRUNCH BISCUIT CORP EDILBERTO A GEORGE T GREAT WALL COMMERCIAL INSURANCE PARAMOUNT
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