The insurance companies involved in the Lombard and Hadfield Streets fire could take legal action against John Fernandes Ltd for the part its vehicle played in the destruction of three large businesses in the fire.
On November 13, an eyewitness reported that a container truck with the John Fernandes logo ran off the road and hit a utility pole. As a consequence there was immediate power outage in the area followed by an electrical spark and then fire broke out.
The fire destroyed Royal Castle, Mohamed's Enterprise and Gift Shop and Auto Supplies and Company (ASCO).
Speaking to this newspaper yesterday a well-placed source said investigations had been completed into the cause of the fire and they revealed that there was no other intervening factor than that of the truck, which hit the pole.
The insurance companies that have exposure in the burnt down businesses are GTM, GuyFlag, United Insurance Company and NAFICO.
"What I know is that investigations have been completed and it shows that there was an unbroken chain of events with respect to the fire since the truck hit it down. It was of an electrical origin which started when the truck ran into the pole," the source asserted.
According to the source, all insurance companies are guided by regulations, one of which states that after indemnity or compensation any negligent party involved in the fire could be asked to pay.
The source said in this case, John Fernandes Ltd was the negligent party and from all indications the insurance companies would restore the policyholders' business and then proceed against John Fernandes.
In addition, the source told this newspaper that so far only Nazir Mohamed proprietor of Mohamed's Enterprise had submitted claims for the losses he had suffered. The other businesses, Royal Castle and ASCO are yet to do so and according to the source their sloth in submitting their claims could hold up Mohamed's settlement and the entire process.