Fayaz Bukhari
Srinagar, Sept 24: The Jammu and Kashmir High Court today directed the Insurance Companies to pay interim relief to the claimants who suffered huge losses due to floods in Jammu and Kashmir, claiming over 280 lives and destroying property worth thousands of crores of rupees.
A Division Bench of Jammu and Kashmir High Court comprising Chief Justice M M Kumar and Justice Ali Mohammad Magrey directed: “The learned counsel for Insurance Companies shall seek instructions on awarding interim relief on the assured amount subject to the stipulation aforesaid.”
The direction came after Insurance Companies informed the Court that in Uttarakhand they paid 50 per cent of the assessed amount as an interim relief within a week.
Around 5, 748 people died and property worth hundreds of crores of rupees was damaged in flash floods in Uttarakhand last year where the Insurance Companies paid 50 per cent of the assessed loss amount as an interim relief to the claimants.
The Kashmir Chamber of Commerce and Industries have also sought same type of relief from the Insurance Companies and approached the High Court for direction to Insurance Companies to pay 50 per cent of the assured amount to the claimants taking a plea that the survey will take long time.
The Bench asked the Insurance Companies to bring some sample cases where the survey has been conducted so that “we may analyse as to whether the interim relief would meet the ends of justice or some other course needs to be adopted”.
The counsels for Insurance Companies, during today’s proceedings, apprised the court that in case of Uttarakhand floods last year, they had paid 50 per cent of the assessed amount within one week.
However, the counsel for claimants, Advocate Zaffar Shah citing the case of Bajaj Allianz, argued that the Insurance Company had only 90 surveyors to assess 10,000 claims.
“The buildings along with the stocks are still under water and the number of claims is so huge that interim survey report would take two years because there are limited surveyors. Therefore, on the basis of sum assured, 50 per cent amount should be released with a stipulation that final claim would adjust the interim relief either way,” Shah said.
The court directed: “Learned Counsel for the Insurance Companies shall seek instructions on the issue of awarding interim relief on the assured amount subject to stipulation. The reason for such an approach is that in many areas the water has gone upto 12 feet and whole stock of assured have been damaged. Various articles which have been touched by flood waters, the Directorate of Health Services has issued an advisory not to touch such articles which may be contaminated and may cause health problems. In such a situation, it has to be found by the Insurance Companies whether there could be any possibility of deviating from the assured amount on the basis by adopting yard stick of interim report by the Insurance Companies.”
The State Government said on Monday that they can’t compensate the business houses for their losses as they are covered by Insurance policies and can be compensated by these companies.
The Government told Court: “…with regard to stores in commercial complexes and the shops, it is submitted that they are covered by Insurance policies and the same can be compensated by concerned Insurance Companies. However, despite the insurance cover Chief Minister has taken the matter with Government of India to impress upon all Insurance Companies to expedite the assessment of loss by deputing the surveyors at the earliest.”
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