Excelsior Correspondent
SRINAGAR, Oct 31: The Jammu and Kashmir High Court today directed the Bajaj Allianz to comply with the court directions and pay 50 or 95 percent interim relief to their clients as per the earlier court directions.
Earlier the division bench of the High Court comprising Chief Justice MM Kumar and Justice Ali Mohammad Magrey rejected the objection raised by Bajaj Allianz General Insurance Company that the company is private company therefore, not ‘State’ within the meaning of Article 12 of the constitution and is subject to the regulatory control and authority of IRDA under Section 3 of its act as such is forbidden under the act to settle a claim of more than Rs 20,000 unless it receives a report from the loss assessor under this act.
“The objections are totally devoid of merit. It is well settled that the High Court in exercise of its writ jurisdiction under Article 226 of the constitution of India read with Section 103 of the State Constitution can issue writ to anybody-private or public to undue injustice”, directed Court.
The court order reads: “The miseries of people have to be eased out by giving them some relief and it has been made clear in make shift court that the directions would also apply to Bajaj Allianz also.”
Making a mention of the dismissal of petition of four Insurance Companies by Supreme Court the bench said: “Once the court has taken notice of extra-ordinary situation in view of circumstances obtaining in the Valley created by unprecedented floods, which has been approved by Supreme Court then the said objections are simply frivolous.”
The HC observed that people are in pain as they have suffered mental agony and trauma. It directed the Insurance Companies: “It is not for the assured to chase the Insurance Company all the time. Therefore, the Insurance Company shall contact all such claimants in whose favour cheques have been prepared”
The direction was passed after the counsel appearing for National Insurance Company stated that “out of further 98 cheques 8 have been delivered and remaining could not be as the claimants neither did contact the company nor file any undertaking.”
Company’s counsel further stated that these cheques have been prepared on October 12 but are with them as the assured did not contact them. “We feel that if a cheque is prepared on October 12, it must be on the basis of claim made by claimant wherein he must have given his cell number or contact number. Therefore, the Insurance Company could easily contact”, directed court.
To make its previous orders clear with regard to expeditious disbursement of interim relief to flood victims, the court in its order added: “The spirit of the previous orders passed by the court is that expeditious disbursement of the amount be made so that the party that has suffered damages may start their life.”
Court further said that it was not to give handle to Insurance Companies to delay payment and keep on waiting for the preliminary survey report to come. “However in cases where the survey report has been received then the amount has to be disbursed as per the assessment made by the surveyor which would of course be considered under protest as the remedy to challenge the preliminary or final report would remain open to the claimant under ordinary law”, the bench added.
Court also directed that preliminary or final survey report shall be furnished to the assured to that he may be able to analyze the same and avail his remedy in accordance with law.
Senior Advocate of the High Court, Zaffar Shah, appearing for claimants during the arguments pointed out to the court that there could be some discrepancies in data furnished to the court by the companies as such he may be permitted to file any counter to such data. Court granted him liberty to file it as well directed the companies to file their latest status report before the adjourned date.
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