CHENNAI: The structure was deemed illegal and was on the verge of being partially demolished before the building owner moved the courts to avoid the move. But that may have little bearing when the insurance claim is settled for the loss of building and stock in it due to the fire, said sources in the industry.
“The building has been paying tax to the city corporation, water tax and all other taxes which a normal building would do. So where is the question of illegality when the government bodies are giving it legal status? We will take that also into account,” said sources from the insurer, New India Assurance, regarding structure’s legality.
However, a final call on this is with the surveyor. There is another view from within that the surveyor may not take into account only four floors that have been constructed legally. Sources told Express that the insurance company has deputed a team of officials at the site, and the head office has been intimated about developments.
Officials refused to provide details about stock that has been insured, maintaining that the surveyor has to assess all records and check documents before settling claims. The entire process, they added, was in the preliminary stages. The retail brand is likely to have insured buildings as per market value under reinstatement and not as per book value, that is the purchase price of the property, they added.