In a major succor to people left with damaged shops, houses and personal assets in the flood-affected areas of Jammu & Kashmir, the Supreme Court on Friday directed the insurance companies to immediately roll out the insurance claim without prior inspection and survey.
The Bench, headed by Chief Justice Hl Dattu, said that the situation in the State had compelled them to take such an exceptional view. It refused to interfere with the order passed by Jammu & Kashmir High Court which directed the insurance agencies to immediately dole out 95 per cent in cases where the insurance policy was upto `25 lakh and 50 per cent where the insurance claim was above this amount.
“We will not interfere with the order of the HC taking into consideration the tragedy that has taken place,” the Bench, also comprising Justices SA Bobde and Abhay Manohar Sapre, told Attorney General Mukul Rohatgi who presented the appeal on behalf of the companies.
CJI recounted that on his visit to the state on Sunday he saw the pathetic conditions of the district court, residential places and market area which got submerged in 14 feet deep water during floods. “See the tragedy that has taken place. Not even one shop can be opened in and around lal Chowk,” the bench said.
Rohatgi pointed out that there are 9000 surveyors in the state who can assess the claims and settle the amount. But he opposed to the HC order which ordered a blanket relief to all insured persons. He even objected to the quantum of 95 per cent to be disbursed forthwith. “It will cause us an outlay of `4,000 crore,” AG said, pointing out that insurance companies will not be able to bear this huge burden which is against the prescribed laws.
The bench said, “Sometimes we have to ignore the rules and regulation in the interest of the poor people. The calamity has affected large number of persons.” In addition, the Court asked the J&K government to make the office and residence of High Court Chief Justice, the High Court building and district courts fully operational by Monday. The bench will take up the matter on October 31.