Downtown merchants cry foul

PORT-OF-SPAIN merchants are crying foul over the decision by insurance companies to pursue costs for writs filed against them in 1990. Downtown merchants filed over 100 writs filed the writs against insurance companies in 1990 for failure to pay compensation for the losses incurred during the coup. The insurance companies are now demanding that the businesses pay $15,000 for each writ filed, amounting to over $1 million. One Charlotte Street businessman said yesterday the demands by the insurance companies are unfair. “What they’re asking for is too much money,” he said. “The insurance companies should be ashamed of themselves. We have been very loyal to them.”

The businessman, who is still carrying losses from the coup on his books, added that the businesses which survived remained with their insurance companies. Others were forced to close after the looting. Terrorism cover was added after the coup. Before that, businesses were not covered for terrorism and insurance companies did not pay for damage as a result of the coup. Insurance costs also doubled after the terrorist attack on the US in 2001. The businessman said downtown merchants did not think they would have to pay costs in the invividual writs filed after the first case was heard. When that case went against the businessmen, they did not pursue the other writs.

“We were under the impression that after the test case, no costs would be paid on the other cases,” he said, adding that there has been no communication from their insurance companies on the matter for about five years. Another downtown businessman said he no longer has terrorism cover. It was added after the coup in 1990 but his insurance company stopped offering it last year.  “If it happens again we could lose a lot,” he said. His store was not looted in 1990 but he lost money because other stores which bought goods from him were looted and he was not paid for the lost stock.

Head of the group of insurance companies involved in the issue, Ray Sumairsingh said yesterday he was willing to meet with DOMA on the issue. “I don’t know what’s going to happen now,” one merchant said. “Some businessmen have made counter offers individually but they were not accepted.” The Downtown Owners and Merchants Association (DOMA) will be holding a meeting tomorrow at City Hall to discuss the issue. “We know they are entitled to cost but bearing in mind the fact that many people either lost their businesses or are still paying and the fact that they escaped liability I think they should rethink their position,” DOMA president Gregory Aboud said yesterday.