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J and K HC Cautions Insurance Firms

Published: 15th October 2014 06:00 AM  |   Last Updated: 15th October 2014 06:00 AM   |  A+A-

Cautions

SRI NAGAR: The Jammu and Kashmir High Court on Tuesday warned the insurance companies against freezing their bank accounts if they did not follow the court order of paying 50 per cent of the insured amount for policies above Rs 25 lakh and 95 per cent for the policies below Rs 25 lakh in the flood-affected state.

A Division Bench of the High Court headed by Chief Justice M M Kumar on Tuesday heard the PIL filed by Kashmir Chamber of Commerce and Industry  (KCCI)  for a directive to the insurance companies to settle claims of the flood-affected people.

After hearing counsels of four insurance companies, the High Court observed that it seemed that the firms were not bothered to follow the orders passed by it on September 26.

On Tuesday, the Division Bench took strong exception to the “delaying tactics” adopted by  the insurance companies, saying, “If the companies don’t understand the sober language, then we have enough weapons in our armoury to make them comply with our orders. We will call the CEOs of the firms and show them the right place, where they have to go”.

Hinting at freezing the accounts of insurance companies, the court said, “If you don’t have any substantial data to prove that you are complying with the spirit of court directions, then we will freeze your accounts and appoint two senior advocates to disburse the amount to the claimants.”

According to documents submitted before the court, four insurance companies -- The National Insurance Co. Ltd, New India Assurance Co Ltd, United India Insurance Co. Ltd and Oriental India Insurance Co. Ltd-- had received 9,917 insurance claims worth Rs 980.49 crore till October 9. Of this, the insurers have processed only Rs 25.10 crore worth of claims. 

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