United In­dia to Pay for Bridge Col­lapse, Lives Lost

RELIEF ON CARDS In­surer will pay for cost of re­build­ing and third-party li­a­bil­i­ties

The Economic Times - - Markets: Beating Volatility - Shilpy.Sinha@ times­group.com

Mum­bai: United In­dia In­surance Com­pany will foot the bill of re­build­ing the IVRCL bridge that col­lapsed in north Kolkata as well as li­a­bil­ity aris­ing out of lives lost.

“We have re­ceived in­ti­ma­tion and have de­puted sur­vey­ors,” said a United In­dia In­surance ex­ec­u­tive, who did not wish to be iden­ti­fied. “The claim will be paid as part of the con­struc­tion pol­icy that cov­ers both cost of re­build­ing and third-party li­a­bil­ity,” he said.

This could come as a relief to the Hy­der­abad-based in­fra­struc­ture com­pany which is grap­pling with liq­uid­ity is­sues and high debt.

As per the pol­icy, the in­surance com­pany will pay ei­ther10% of the sum as­sured or .₹ 10 crore if the project size is less than .₹ 100 crore. In this case, the project size is more than .₹ 100 crore, so third-party li­a­bil­ity could go up to .₹ 25 crore.

Sev­eral em­ploy­ees of IVRCL were de­tained fol­low­ing the col­lapse. The com­pany of­fi­cials hinted that the bridge might have col­lapsed due to a bomb blast.

The in­surance pol­icy, how­ever, does not of­fer cover for ter­ror­ism. “If the ac­ci­dent has hap­pened due to a bomb blast as the offi- cials are in­di­cat­ing, we will not have to pay any claim,” the ex­ec­u­tive said.

Ter­ror­ism cover is gen­er­ally ex­cluded from a stan­dard project in­surance pol­icy. It is taken over and above a stan­dard pol­icy and the premium col­lected un­der it is trans­ferred to ter­ror­ism pool. The General In­surance Cor­po­ra­tion Re man­ages the ter­ror­ism pool.

The pol­icy in­sures against phys­i­cal dam­age to the works, in­clud­ing ma­te­ri­als on site. The other part of the pol­icy cov­ers the full re­in­state­ment value of the works and other costs such as con­sul­tancy and pro­fes­sional fees that are in­curred.


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