Srinagar: After Supreme Court of India declined to interfere in its orders, the J&K High Court on Friday directed all the insurance companies to file compliance report by Tuesday on the directions of interim relief to flood-affected people in the state.
In case of failure, a division bench of Chief Justice M M Kumar and Justice Ali Mohammad Magrey directed all the Chief Executive Officers of all the insurance companies to appear in person along with record on October 14 (Tuesday) to “answer the court queries.”
On September 26, the court had directed the insurance companies to pay 50 percent of insured amount for policies above Rs 25 lakh and 95 percent for policies below Rs 25 lakh as interim relief to the flood-affected shopkeepers.
On October 1, the court made the orders applicable to the cases of total destruction of houses and other properties as well to the motor vehicles.
Meanwhile, the court has sought response on a fresh application filed by Kashmir Chamber of Commerce and Industry (KCCI) seeking directions to the insurance companies for providing copies of the surveyors’ reports, whether interim, tentative or final, to the claimants.
It also sought directions to order CEOs of all the insurance companies to remain personally present in the court to explain their conduct for not complying with the directions by the court and “why they should not be dealt with for contempt of court.”
“The insurance companies be directed to furnish details of assured amounts to all the claimants and 50 percent of the amount be frozen and/or paid to the claimants subjected to furnishing of undertaking, in accordance with the direction of High Court on September 26 and October 1.”
Lastly, the KCCI seeks directions to the insurance companies to pay 95 percent of the assured amount to the claimants in case of policies of less than Rs 25 lakhs where the entire business premises were in water (ranging between 10 to 23 feet). The notice was accepted by advocates Javed Iqbal and Anil Bhan for insurance companies.
The court was hearing a Public Interest Litigation filed by two advocates—G A Lone and Jahangir Iqbal Ganie. While the lawyers were present in person, KCCI was represented by senior advocate Z A Shah.