Jammu and Kashmir HC directs insurance cos to pay 50 pct of insured amount: SRINAGAR, SEPTEMBER 26 : In a major relief to flood-affected businessmen, Jammu and Kashmir High Court today directed the insurance companies to pay 50 per cent of insured amount for policies above Rs 25 lakh and 95 per cent for policies below Rs 25 lakh as interim relief. We feel that policy in respect of shopkeepers need to be effectively implemented. Under the caption Stock Loss, it has been contemplated that cases with sum insured is up to Rs 25 lakh, then after making 5 per cent deduction towards dead and obsolete stocks is to be considered as the basis of settlement. The insured is to be given an option to accept sum insured less by 5 per cent, a division bench of the High Court said in an 11-page judgement. The bench was hearing a petition filed by Kashmir Chamber of Commerce and Industry (KCCI). Elucidating the order, the bench said, In other words, 95 per cent of the sum insured has to be disbursed in case of policy involving Rs 25 lakh or less. In case of the policies with sum insured up to Rs 25 lakh, the shopkeepers policy should be strictly followed as observed. In respect of the policies with sum insured above Rs 25 lakh, 50 per cent of the assured amount shall be released after receiving undertaking from the insured and also filing of the undertaking by the officer concerned insurance company, it said.
Posted on: Fri, 26 Sep 2014 17:08:14 +0000
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