HC reserves judgment on payment of interim relief to businessmen

Excelsior Correspondent
SRINAGAR, Sept 25: The Jammu and Kashmir High Court today reserved the judgment on the payment of interim relief by Insurance Companies to the businessmen whose goods were destroyed in devastating floods in Kashmir.
A Division Bench of Jammu and Kashmir High Court comprising Chief Justice M M Kumar and Justice Ali Mohammad Magrey today after hearing the arguments by the Counsel for petitioners, Kashmir Chamber of Commerce and Industries, and respondents, Insurance Companies, reserved the judgment which is expected to be delivered tomorrow.
The counsel for the Insurance Companies told the court that they will follow the Uttarakhand model for the full damage to the businesses and will take a decision on the partially damaged businesses after assessment.
In Uttarakhand, where 5, 748 people died and property worth hundreds of crores of rupees was destroyed in flash floods last year, the Insurance Companies paid 50 per cent of the assessed amount to the businessmen as an interim relief within a week of assessment.
The Insurance Companies also produced two sample cases before the court as per court directions where one businessman had insured his goods for Rs 24 lakhs and was claiming full damage but the Insurance Company is paying him Rs 3 lakh only. In another case, a businessman has insured his goods for Rs 3 lakh and had suffered damage to the tune of Rs 2 lakh and was paid Rs 1.9 lakh.
The counsel for the KCCI, Advocate Zaffar Shah, told Excelsior: “We argued before the Court that one member of the KCCI should be included in the assessment of the losses of business men and they should not be left at the mercy of surveyor so that there is no room for allegations.”
Shah told the court that the criteria for assessment of partial damages to the business houses is ambiguous. He told the court that the areas where there was water logging business men have suffered full damage to their goods.
Earlier yesterday, the court directed the Insurance Companies to pay interim relief to the claimants who suffered huge losses due to floods in Jammu and Kashmir, claiming over 280 lives and destroying property worth thousands of crores of rupees.
In the meantime, the State Economic Reconstruction Forum (SERF), an amalgam of business and trade organization formed after floods in the State, today demanded speedy settlement of insurance claims, ex gratia, implementation of the RBI guidelines, setting up of framework for immediate relief and long term restructuring measures, exemption of import duty on woollens and prefabricated winterized dwelling units, speedy dewatering of all inundated areas, immediate plugging of bund breaches, restoration of medicare and supply of proper vaccines and inoculations for preventing of outbreak of any epidemic and ensuring proper supply of life saving drugs.
The SERF took a serious note that the approaching winter related problems like housing and heating arrangements for the population were yet to be initiated. The SERF decided to prepare a detailed paper on the short and long term measures required for the redevelopment of the Valley and assessment on actionable areas for risk reduction to build resistance against future floods.
To reduce the costs of products and with the view of reducing the burden on the consumers, the SERF has decided to seek the suspension of Excise, Passenger Tax, VAT and Income Tax in Kashmir.
The SERF also took strong note of the negligence on part of the telecommunication companies that resulted in total chaos and confusion besides mental trauma due to total communication breakdown.
The members of the Kashmir Chamber of Commerce & Industry (KCC&I), Federation Chamber of Industries (FCIK), Kashmir Traders & Manufacturers Federation (KTMF-Y), Kashmir Economic Alliance (KEA-S), Kashmir Traders & Manufacturers Federation (KTMF-B), Kashmir Traders Federation (KTF), Kashmir Economic Alliance (KEA-Y), Chamber of Commerce & Industries Kashmir (CCIK), Kashmir Hotel And Restaurant Owners Federation (KHAROF), J&K Hoteliers Club, Travel Agents Society of Kashmir (TASK) and Jammu & Kashmir Tourism Alliance (JKTA) took part in the meeting.

Follow our WhatsApp channel