Now begins the aftermath of floods in Kashmir and the status of various classes of people that have become victims of its ravages. Damages are widespread and it will take good deal of time to make factual assessment of losses suffered. Generally speaking, shopkeepers get their stocks insured as a matter of safety and common practice. But as we know there is no uniformity in getting the stocks insured. Everything depends on the kind of stocks, quantity stocked, and the status of business in the stocks etc. Now, that flood waters are receding and people are returning to normal life, the business community that has been very adversely affected is faced with serious problems. The stocks have been spoilt especially if these are in the category of eatables or medicines, groceries, textiles etc.
It appears that four insurance companies that are in business in Kashmir have not been addressing insurance cases with extraordinary interest, speed and objectivity but are using their conventional methods of making assessment of losses. Disappointed with their attitude, the Chamber of Commerce and Industries in Kashmir brought a case in the court supplicating for humanistic approach to the issue of disposal of 1700 cases of insurance of shopkeepers big and small in Kashmir. In a landmark decision, Division Bench of the State High Court has ordered that 90 per cent of the assessed losses in cases of insured stocks up to a limit of 25 lakh rupees be released immediately. As regards stocks insured for any sum above Rs 25 lakh, 50 per cent of the estimated losses will be paid immediately. The Division Bench has also laid down some guidelines for making the assessment of losses also and has directed that the insurance companies should submit a status report by the next hearing of the case.
The DB has made some relevant observations which normally are not made by any court. These observations say that the insurance companies should not get embroiled in the linguistic niceties and legal terminology but they should keep before them the humanistic aspect of the cases. It has rightly remarked that this unprecedented catastrophe has to be taken into account from broader aspect of how wrathful elements can be with humanity and the humanity has to rise to the occasion to mitigate the suffering of the people as quickly as it can and without hassles. We highly appreciate the response of the court to the critical situation that has developed after the floods swept everything in the areas where it struck. We expect the insurance companies to deal with these 1700 cases with a large sense of humanism and not get bogged down in minor and avoidable disputes. The court has said that if in a case 95 per cent of stocks have been declared damaged and useless, it should mean that 100 per cent stocks are damaged and the insurance companies will not make a case of retrieval of the remaining 5 per cent of stocks as that would be illogical. At the time of releasing the 90 per cent or 50 per cent of the assessed losses, an undertaking will be signed by the parties that any readjustment of transacted amount shall be made at the time of final settlement of the cases.
Conscious of the fact that some miscreants and spineless people would frame false and fabricated cases of insurance in order to extract compensation from the insurance companies, the court has warned that in such cases the law will come down with a heavy hand and any person detected of indulging in fraudulent case will be prosecuted according to the law of the land.
We hope that the orders of the Division Bench in connection with easing the payment of insured amount to the shopkeepers who have become victims of flood will set an example for other agencies also including the Government that in the aftermath of this catastrophic event civil society has to rise to high standards of humanism and provide relief to the sufferers so that they are able to restart their devastated lives. This is a huge moral and material issue in which consciousness of civil society plays important role. The High Court has based its decision on human aspect of the situation and thus given a good lead that will go a long way in boosting the morale of demoralized society.
It is a matter of great satisfaction that the Union Government has moved with speed to see to it that conditions return to normalcy in Kashmir. It has promised support to whatever extent needed to see that the losses suffered by the people are made good. We have not been depending on any foreign aid as used to be the case in the past. But of course we shall have to upgrade and streamline our disaster management structure and policy. This is a harsh lesson which the Government must learn from the catastrophic floods.
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