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| HC pulls up Insurance Companies, refuses to modify order | | | Early Times Report
Srinagar, Sept 30: Pulling up insurance companies, the Jammu and Kashmir High Court today turned an application by them, seeking modification of order on September 26 regarding interim relief to flood-affected shopkeepers in the state.
By virtue of the order, the 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 interim relief to the flood-affected shopkeepers in the State.
"Don't try to be smart, it is time to be realistic," a Division Bench of the court comprising Chief Justice M M Kumar and Justice Ali Mohammad Magrey told counsel for insurance companies namely National Insurance Company, New India Assurance Company, United India Insurance Company, and Oriental India Insurance Company. However, the Division bench granted liberty to the insurance companies to file fresh affidavit in compliance to the directions.
The court was hearing a petition filed by Kashmir Chamber of Commerce and Industry (KCCI).
The court had directed that policy in respect of shopkeepers taken at a meeting of GIPSA by the insurance companies needs to be effectively implemented.
Under the caption 'Stock Loss', the meeting had contemplated that cases with sum insured is up to Rs 25 lakh, then after making 5 percent deduction towards dead and obsolete stocks is to be considered as the basis of settlement. Elucidating the court had observed in the order 95 per cent of the sum insured has to be disbursed in case of policy involving Rs 25 lakh or less. In case of the policies with sum insured up to Rs 25 lakh, the court had directed that 50 percent of the assured amount shall be released after receiving undertaking from the insured and also filing of the undertaking by the officer concerned of the insurance company
The Court directed the four insurance companies to file compliance report in keeping with GIPSA decision by the next date of hearing.
The court had also asked Chairman JK Bank to meet out the grievances of the insured in tune with the scheme formulated by National Legal Services Authority and adopted by Jammu and Kashmir State Legal Services Authority. |
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