Settle flood victims' claims: SC to insurance cos

Settle flood victims' claims: SC to insurance cos

In a relief to people in Jammu and Kashmir, who lost their properties in the recent flood, the Supreme Court on Friday asked the insurance companies to pay 50 per cent of the insured amount for policies above Rs 25 lakh and 95 per cent for policies below Rs 25 lakh as an interim measure.

A three-judge bench presided over by Chief Justice H L Dattu refused to interfere with the Jammu and Kashmir High Court order to the companies to pay the claim of flood-affected people.

The court rejected the firms’ plea for grant of one month to carry out the survey to settle the claims.

“We are not going to change a word in the high court’s order. The chief justice of the high court has seen the tragedy with his own eyes. Sometimes we have to ignore the rules and regulation in the interest of the people suffering from natural calamities”, the bench said.

The insurance companies— United India, National, Oriental India and New India Insurance—submitted that till October 9, 2014, they have received 9917 claims of an estimated amount of Rs 980.49 crore and they have already made 983 cheques of total amount of Rs 25.104 crore.

The bench also directed the state government to take all steps to make high court functional from Monday. Following the flood, the high court has been functioning from a makeshift accommodation.