Insurance firms agree to pay market value of property at Maradu


Policy to cover injury, illness, and damage caused to tangible property

Insurance companies shall pay for the “reinstatement of the property” that may be lost or damaged due to the impact of the demolition of Maradu apartments on the “basis of Market Value prevailing without any depreciation,” according to the agreement inked by the Maradu Municipality.

The affected parties will have to send notices together with the estimate and proof of damage to the municipality and the insurance companies for settlement of claims, according to insurance documents.

The residents had long been demanding that compensation equivalent to the market value shall be paid for rebuilding the structures that may be damaged due to the demolition of the apartments.

The insurance policy will also cover injury to persons, including death, bodily injury, and illness, and damage such as physical damage caused to tangible property.

If a series of several bodily injuries or property damage takes place, which are attributed directly or indirectly to the same cause, all such injuries and damage will be treated as one claim. However, any claim arising from one specific case, made after three years after the first claim, will not be covered by the policy, the documents said.

The National Insurance Company had inked the agreement by involving the Maradu Municipality and the companies that were contracted for demolishing the apartments.

The insurance company shall not be liable to make payment for any claim made in a fraudulent manner or made with material misstatement or non-disclosure of material information. Any dispute regarding the quantum of compensation to be paid shall be referred to a technical committee comprising an advocate and surveyor appointed by the company and an advocate and valuer appointed by the insured, the documents said.

As regards injuries caused to persons, they shall be deemed to have occurred when the claimant first consulted a qualified medical practitioner in respect of the injuries. Damage shall be considered to have occurred when it becomes first evident to the claimant, according to the documents.

The policy shall not cover liability that may arise out of deliberate, wilful, or intentional non-compliance of any statutory provision. The loss of goodwill or market will also not be covered by the policy, according to the insurance company officials.

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Printable version | Jan 20, 2020 11:16:40 PM | https://www.thehindu.com/news/cities/Kochi/insurance-firms-agree-to-pay-market-value-of-property-at-maradu/article30518162.ece

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