SET-listed retail developer Central Pattana (CPN) Plc will sue insurance firms for failing to pay compensation for damage caused by the fires set at its CentralWorld shopping complex at the end of the red-shirt protest in Bangkok on May 19.
Chief executive Kobchai Chirathivat said on Thursday the issue delaying compensation payment centred on the issue of whether the fires at CentralWorld were an act of terrorism, or not.
CentralWorld, at the centre of Ratchasprasong intersection, was set ablaze after the military crackdown that ended the red-shirt protest. Much of the shopping mall has since been reopened.
"We plan to sue them first for industrial all risk (IAR) coverage payouts," Mr Kobchai said.
CentralWorld had an IAR coverage with Deves Insurance for 30 billion baht - of which 13 billion baht was or its shopping mall area - while Zen Department Store, which is part of the complex, bought another terrorism policy for up to 3.3 billion baht for its store, he said.
Thai Setakij Insurance also offered terrorism coverage for CentralWorld up to 3.5 billion baht.
Deves Insurance's executives said this legal dispute stems largely from discord between the two parties, particularly about the acts that caused damage. The insurer insists that the payout must comply with the conditions of the contracts.
Puttipong Danboonsute, assistant managing director of Thai Setakij Insurance, said the company is still in the process of assessing the actual cost of the damages. A payout offer is highly likely soon, he added.
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