KOCHI: The high court has registered a suo motu case pertaining to the huge pendency of insurance claims filed by victims of floods, which ravaged the state recently.The registration of suo motu case was recommended by justice K Surendra Mohan after noticing a report by advocate Jacob P Alex, the amicus curiae appointed by the court to assist in cases related to flood relief, about the need for early settlement of insurance claims made by flood victims and the huge pendency at present.While recommending for submitting the matter to the chief justice for considering whether a suo motu case can be registered, justice Surendra Mohan had said the matter seems to be of great public importance. Insurance Regulatory and Development Authority of India (IRDAI), public sector insurance companies, ministry of finance, and chief secretary of the state government should be made parties in the case, the judge had suggested.On December 11, chief justice Hrishikesh Roy approved the recommendation that it is a matter of great public importance that warrants registration of a suo motu public interest litigation (PIL).In the report filed to the high court, the amicus curiae had pointed out that early settlement of insurance claims related to the floods is very vital in restoring economic normalcy. It may not be possible for insurance companies to settle large number of claims in a short time and making interim payments is an effective interim measure, the report had said while citing the procedure adopted by Jammu and Kashmir high court after the floods there in 2014.Suggestions for early settlement of insurance claims, disbursement of interim payment, and holding insurance adalats were recommended by the amicus curiae in the report.Such moves are necessary as insurance companies estimated around 50,000 claims for Rs4,500 crore approximately on account of the floods, the report pointed out.Several representatives of traders and merchants from floods or landslide affected areas such as Ranni in Pathanamthitta , Chalakkudy in Thrissur, Paravur in Ernakulam , and Chengannur in Alappuzha district informed that large number of insurance claims are pending final settlement for loss of shops or commercial establishments and this delay is causing much difficulties to them, the report stated.Similarly, claims for loss of vehicles, animals, etc are also pending final settlement and claimants from such unorganized segments are unable to take up the issue, the amicus curiae's report said.Three major issues were identified by the amicus curiae, which included non-disbursal of claim amount by insurance companies even after completion of survey by surveyor or loss assessor, non-completion of survey, and issues pertaining to non-payment of renewal premiums during the flood period. Considering the magnitude of loss and large number of claims that arise out of a natural calamity, it is necessary for IRDA and insurance companies to make arrangements for early settlement of claims, the report said.It was also pointed out by the amicus curiae that in some areas like Ranni, where even banks were inundated, renewal premiums could not be processed for insurance policies by banks. State government and insurance companies need to coordinate more to ensure speedy relief to victims.

Stay updated with all the Latest Kochi headlines here. For more exclusive & live news updates from all around India, stay connected with NYOOOZ.