The Ecuadorian Air Force and the Sucre Insurance Company that belongs to the Government are currently having issues due to the lack of a contract between the two entities, and the conclusion of an insurance policy earlier this year, which leaves the members of the Air Force unprotected.
According to El Universo newspaper, in a statement sent by The Minister of Defense, Javier Ponce, to the CEO of Seguros Sucre, Maximiliano Donoso on August 11th, it’s clarified that “there is not a legal subscription of a contract of insurance or insurance policy” with the Ministry of Defense.
In order to protect the Air Force, an insurance policy between the Seguros Sucre and the Military existed since 2009 until April 5th, 2010. The Policy was not renewed, however, for the rest of the year because of irregularities found during an audit of the contract.
On July 26th, the Legal Advisor of the Ministry of Defense cancelled the Insurance Company “without the use of a Insurance Policy”. At the moment, however, Seguros Sucre affirms they have an Insurance Policy with the Air Force which ends on January 5th, 2011.
The problem is an alledged overpricing, an unjustified penalty for high accident rates and the presentation of documents without legal value for the insurance and the stability of military aircraft, El Universo reports.
According to El Telégrafo newspaper, Seguros Sucre has reported they have decided to increase its capital by $10 million. According to Maximiliano Donoso, CEO of the company, the main objective is to extend their capacity of Insurance Policy Subscriptions.
“The board has decided to increase the capital so that we can move forward to the next stage of insurance subscriptions”. Apparently, they want to end this year’s balance with more than $80 million.
The company is currently in a reengineering process in order to extend their service coverage, particularly with the Government.