Page 12 - ARUBA TODAY

A12 WORLD NEWS
Wednesday 24 OctOber 2018

Puerto Ricans fight for insurance money a year after Maria

ORADO, Puerto Rico (AP) — $2.6 billion in damages for
Thousands of Puerto Ricans those who have not been
have been forced to drain compensated.
their savings, close their "What is happening in
businesses, or resign them- Puerto Rico is very, very se-
selves to living with struc- rious," said attorney Fran-
tural damage as they fight cisco Amundaray, who is
insurance companies over representing several clients
millions of dollars' worth of pursuing a response from
claims that have gone un- insurance companies. "The
answered or unpaid more companies, since they
than a year after Hurricane were not prepared for an
Maria. event of this kind, are refus-
Experts say the Category ing to pay claims that are
4 storm caught insurance of absolute merit."
companies off-guard and Among those still waiting
left them reeling finan- for a full payment is Lilli-
cially after they were hit ana Sanchez, who owns a
with nearly 279,000 claims, pharmacy in the southern
a number that one expert coastal town of Salinas.
called "extraordinary." One Her husband lost part of his
major insurer has already hand trying to fix a broken
folded, leaving more than generator, which is insured
1,500 claims worth a total for $30,000.
of $70 million up in the air. Sanchez reported $50,000
Many worry other compa- in total losses after Maria,
nies might follow. In this Sept. 26, 2017 file photo, Nestor Serrano walks on the upstairs floor of his home, where the and she has since been
"The industry has never walls were blown off, in the aftermath of Hurricane Maria, in Yabucoa, Puerto Rico. forced to refinance her
faced such an astronomi- Associated Press house, cancel her daugh-
cal number of claims," said ter's university housing, cut
Iraelia Pernas, executive worst case scenario, Hurri- The commissioner's office those who were forced to her staff at the pharmacy
director of Puerto Rico's cane Maria was difficult for recently launched an au- close a business: He shut- by half and reduce oper-
Association of Insurance them to envision." dit into all companies, and tered a restaurant in the ating hours. She has called
Companies. "No one was Two insurance companies Rivera said he is looking at northern coastal town of the insurance company
prepared for that, not the in Puerto Rico are also un- some more closely than Dorado that he opened several times about her
federal government, not der review with negative others, although he de- four years ago. The 48-year- claim to no avail.
the insurance companies, implications, said Brian clined to name them. His old reported damages ex- "They only tell me that it's
no one." O'Larte, director of the office has received some ceeding half a million dol- being processed," she said.
The Office of the Insurance property and casualty rat- 1,600 complaints, which is lars, but has received only By law, insurance compa-
Commissioner of Puerto ings division for A.M. Best, nearly three times the num- $93,000 from the insurance nies in Puerto Rico have
Rico has already issued an insurance rating firm. ber it reports receiving in a company and has used up 90 days to resolve a claim.
fines totaling more than Hurricane Maria was the normal year. all his savings, sold his home Sanchez said she filed her
$2.4 million against at least strongest storm to hit Puerto Pernas, of the insurance as- and transferred his daugh- first claim 10 days after Hur-
seven companies for de- Rico in nearly a century, sociation, said that it took ter to a more affordable ricane Maria hit on Sept. 20.
lays in resolution and pay- and it did so amid a 12-year insurance companies two school. Pernas said companies are
ment of claims. All compa- recession, causing more years to pay a total of $1.2 By December, he expects making changes to their
nies in the U.S. territory had than $100 billion in estimat- billion in claims following to decide whether he will contingency plans and
bought reinsurance, but it ed damage, destroying Hurricane Georges, a Cat- leave Puerto Rico and expect to fly in claims ad-
was insufficient for some. the power grid and forcing egory 3 hurricane that hit join the estimated 155,000 justers ahead of any major
Commissioner Javier Ri- businesses to remain closed in 1998. She also said the people who fled to the U.S. storms in the future.
vera said it's too early to for months. Overall, Maria pending claims from Ma- mainland after the hurri- For now, the northern coast-
say what will happen with was the most expensive ca- ria are complicated and cane. al town of Loiza is among
Real Legacy, the company tastrophe for the insurance involve mostly businesses, "It's been an incredibly frus- the municipalities affected
that folded. But he believes industry last year, with loss- municipalities, government trating process," Rosario by the delay. Nine basket-
the other company that es amounting to $32 billion, agencies and condomini- said as he recalled the mo- ball courts were destroyed,
exceeded its reinsurance higher than hurricanes Irma ums. ment he entered his restau- including one whose col-
limits, Triple-S, has enough and Harvey, according to "They have to be reviewed rant and saw the damage. lapsed roof remains on the
capital to avoid a similar a report from Swiss Re, a re- with great care because "That day was one of the ground. A tarp, which is re-
fate. insurance company based they're big," she said. few times where I sat down placed every three months,
"There will definitely always in Switzerland. According to Barry, the and didn't stop crying." still covers part of Loiza's
be a risk that some claims Insurance companies in number of pending claims Last month, the administra- city hall, and the city coun-
might not be addressed," Puerto Rico have paid a to- is normal for a disaster of tion of Gov. Ricardo Ros- cil now meets in a rented
he said. "But we will do ev- tal of $4.4 billion in claims, such size, but lawsuits are sello sued various insurance home. Mayor Julia Nazario
erything that is possible." but more than 13,600 claims already being filed. companies after officials said Maria caused more
Michael Barry, with the have not been closed, ac- "We're talking about busi- said they did not respond than $14 million in damage
New York-based nonprofit cording to a report from nesses that have disap- quickly enough to claims but Real Legacy has only
Insurance Information Insti- Puerto Rico's government. peared," said attorney Lee filed after Hurricane Maria. awarded half a million dol-
tute, said that exceeding The report shows that 65 Sepulvado, who has filed They said the lawsuits aim lars of a $9 million claim.
reinsurance limits is highly percent of overall claims a class-action lawsuit. "This to prevent companies from "None of our facilities
unusual: "It tells me that was were closed with payment obviously impacts people's dropping claims because have been repaired," she
an extraordinary event that and 30 percent without lives." they have allegedly ex- said. "We don't have the
even in the companies' payment. Edwin Rosario is among pired. The lawsuits also seek money."q