SRINAGAR: Jammu and Kashmir High Court will hear tomorrow a petition seeking release of 50 per cent of the sum assured to policy holders in flood-hit areas of the State.
A Division Bench of Chief Justice M.M Kumar and Justice Ali Mohammad Magrey will hear the petition which is seeking interim payment of 50 per cent on sum assured to claimants.
The counsels for insurance companies, during today’s proceedings, told 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, citing the case of Bajaj Allianz, argued that the insurance company had only 90 surveyors to assess 10,000 claims.
“The number of claims is so huge that interim survey report would take two years. 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 ,” the counsel for claimants said.
The Division 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 learned counsel for insurance companies shall seek instructions on awarding interim relief on the assured amount subject to the stipulation aforesaid,” the Bench said. (PTI)