Mohamed's Enterprise, one of three businesses destroyed in the Lombard Street fire, has secured $35M as compensation for damages to the building.
Proprietor, Nazir Mohamed, said yesterday he had earlier rejected a $33M offer by the insurance company but confirmed that he accepted a $2M increase after negotiations between his insurance broker and the Guyana and Trinidad Mutual Life Insurance Company (GTM).
He still insisted that the compensation was too small and is hoping that the insurance company would compensate him the full $40M for lost stocks. Stabroek News was unable to get a comment from the owners of Royal Castle and Auto Supplies and Company Limited, the two other businesses that were gutted in the November 13, 2003 Lombard and Hadfield Streets fire.
Mohamed said one week after the fire he had submitted claims for $60M, the exact value of his insurance policy with GTM, for the building. He said the loss adjusters contracted by GTM rejected this saying the company could not compensate him for the entire building since certain parts were not destroyed.
Stabroek News was told that the adjusters observed that the building had retained its solid foundation and that certain areas did not burn. However, following further discussions and negotiations the compensation was increased.
In terms of stocks, Mohamed said he submitted claims for $40M and a pronouncement on this is yet to be made. But Mohamed said he needed the money urgently.
He said his accountant had cross-checked the company records with the loss adjusters and a decision is to be made soon.
On November 3, an eyewitness reported that a John Fernandes container truck ran off the road and struck down a utility pole.
As a consequence there was an immediate power outage in the area followed by an electrical spark and then the fire broke out.