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| HC directs Insurance firms to file compliance report on interim relief by Oct 14 | | Directs CEOs to appear in person in case of failure | | Early Times Report
Srinagar, Oct 10: A Division Bench of Jammu and Kashmir High Court today directed all the Insurance Companies to file compliance report by October 14 with regard to its direction about payment of 50 percent of insured amount for policies above Rs 25 lakh and 95 percent for policies below Rs 25 lakh as interim relief to the flood-affected shopkeepers. "If the compliance report is not filed, the CEOs of all the Insurance Companies shall remain present along with record to answer the court queries," the division bench of Chief Justice M M Kumar and Justice Ali Mohammad Magrey said.
The Division Bench has directed insurance companies to file their response on a fresh application filed by Kashmir Chamber of Commerce and Industry, seeking directions for providing copies of the Surveyors Reports, whether interim, tentative or final, to the claimants.
"The Insurance Companies be directed to furnish details of assured amounts to all the claimants and 50 percent of the amount be frozen and/or paid to the claimants subjected to furnishing of undertaking, in accordance with the direction of High Court on September 26 and October 1," the KCCI said.
The High Court had directed the insurance companies to pay 50 percent of insured amount for policies above Rs 25 lakh and 95 percent for policies below Rs 25 lakh as the relief.
In the backdrop of flood devastation, the High Court last week held that the release of 50 per cent of insured amount in respect of policies above Rs 25 lakh cannot be termed as excessive.
"The cap of 50 percent by no stretch of imagination could be recorded as excessive," the court had ruled in its order on a Public Interest Litigation seeking directions for rehabilitation of flood victims of the State.
"It is not only the total destruction of the stock which may give cause to the insured to make a claim, the compensation may stem from many other heads like loss of earnings during the period of floods in case of shopkeepers policy, displacement of house owner by staying in rental accommodation and hiring of vehicle in case of motor vehicle destruction," the bench had said.
Ruling out the contention of the insurance companies with regard to payment of 50 percent relief in polices where the insured amount is higher than Rs 25 lakh, the court said the amount is not excessive and "it has been made subject to an undertaking by either side to make up the deficiency at the time of settlement."
"This would also apply to the cases of total destruction of houses, properties and motor vehicles," the court had said. |
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