SRINAGAR: Jammu and Kashmir High Court on Thursday reserved its verdict on 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 reserved its judgement after hearing arguments put forth by the counsels for the petitioners and the insurance companies.
The counsels for the insurance companies informed the Court that they will make interim relief payment to the claimants on Uttarakhand pattern in the cases of 100 per cent damage while they will carry out assessment in other cases.
The petitioners were seeking interim relief payment of 50 per cent on sum assured to the claimants.
The counsels for insurance companies, during yesterday’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.