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Repair damaged infrastructure before onset of winter | | | When a group of ministers from Jammu and Kashmir, headed by State Finance Minister Abdul Rahim Rather met Prime Minister Narendra Modi in New Delhi the other day to seek a special rehabilitation package it clearly indicated the state Government’s helplessness in meeting the challenges posed by unprecedented floods that hit the state, causing massive death and devastation in the Kashmir valley. The group of Ministers also wanted Narendra Modi to declare the flood disaster in Jammu and Kashmir a national calamity. They sought immediate provision of dry rations to the affected families. At present, a stock of 74,000 MT of rations are available but a large portion of it was not accessible because of roads and routes having been submerged in water. And if the leaders of trade and industry are to be believed the devastating floods in Jammu and Kashmir have caused an immediate loss of Rs 5,400-5,700 crores to the state's economy, with heavy damages to trade, hotels, restaurants, horticulture and handicraft.. Jammu & Kashmir has been hit by the worst floods in over a century, throwing basic infrastructure like power, Railways and communication in the state completely out of gear. Well the state needs heavy sums of money for rebuilding the damaged infrastructure. Whether through the help from the central Government or through austerity measures and donations pouring from all over the country the Government could rebuild some of the basic infrastructure but what about the general insurance companies who may have to pay several hundred crores of rupees by way of compensation to those who had insured their houses, cars, houseboats and other household goods with the general insurance companies.And once the Government of India declared the flood devastation as a natural calamity or disaster it becomes mandatory for the Government of India to pay compensation to those who had suffered heavy losses to their houses,household goods and vehicles,including cars and trucks.Initial reports indicate that the damage to the state’s public infrastructure due to the worst floods has been colossal and massive. According to these reports,the state needs more than Rs 6,000 crores for helping flood hit people to rebuild their houses and repair damaged vehicles.More than Rs.1,000 crores may be needed for paying compensation to orchardists,farmers and those engaged in handicrafts production. Even a conservative estimate of the damage to public infrastructure like bridges, roads, hospitals and other government buildings puts the figure at between Rs 5,000 crore to Rs 6,000 crore. And if the rebuilding of damaged structures in the private and Government sectors are taken into account the state may need atleast Rs. 10,000 crores. A large number of people may have lost their insurance policies in the flood water and here the Government should provide financial support to the general insurance companies after making it mandatory to accept the claim of those who had lost their policies. Yes, a large number of people in the capital city of Srinagar and other towns have insured their houses, household goods and vehicles with several general insurance companies. It is not yet clear whether the general insurance companies re supposed to pay compensation to those whose houses, household goods and vehicles were damaged in floods but had insured them. If the companies are bound to pay the compensation despite the centre declaring the floods as national calamity or disaster it my turn some of the companies bankrupt. Here the Government has to play a significant role in the shape of reimbursing part of the heavy expenses incurred by these companies while paying compensation to the policy holders. As far as the Life Insurance Companies are concerned these companies may not find it difficult to honour the claims of the kins of those who lost their lives because the total casualties may range between 300 and 400. What seems to have added to be woes of the general insurance companies is the fact that majority of people,whi invariably insure their houses, household goods and vehicles, belong to Srinagar city and major towns which have remained submerged under three to nine feet water causing heavy damage to the houses and goods. Atleast 5,000 to 7,000 cars stand under water even after flood water has started receding. The Government has to make it clear if the General Insurance Companies are to pay compensation in case the Government has announced to compensates the losses of the flood hit people. The Government has announced that it will pay Rs.three lakhs as exgratia relief to the kins of those killed in the floods. And if all those killed received exgratia relief will they be entitled to receive compensation from the Life Insurance Companies too ? |
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