Thursday Dec 12, 2024
Thursday Dec 12, 2024
Friday, 16 June 2017 00:00 - - {{hitsCtrl.values.hits}}
By Chathuri Dissanayake
The National Insurance Board (NITF) estimates compensation claims from recent floods and landslides to reach Rs. 1.6 billion, with majority being filed for damages caused to houses.
CEO, Sanath De Silva said NITF will also pay damages sustained to any house regardless of the legality of the housing unit occupied by the claimant, including houses built on land owned by Land Reclamation Commission.
“One of the main concerns of the people were if they would be paid if they were squatters. They will be paid, but only up to the assessment of the structure that was available. If they were registered for utilities or were listed in the electoral registry they will be paid compensation,” he said.
NITF has already released a sum of Rs. 395 million, including Rs. 110 million for immediate relief measures. The remaining Rs. 275 million was released through the Disaster Management Ministry to pay a Rs. 10,000 as an advance on compensation on damages caused to housing in the affected areas house constructions.
The estimate of Rs.1.6 billion was reached based on the average value of the claim during 2016. NITF expects the claims to be much less than last year, due to the characteristics of the areas affected. De Silva said that the highest claim received last year was Rs. 750,000.
According to the latest reports by the Disaster Management Centre 20771 houses have suffered partial damages while another 32124 houses has been totally destroyed.
However, De Silva said that the extent of the damage was less compared to the damage sustained in 2016 floods.
“We paid 70,000 claims for house damages, while another 5000 small businesses were affected last year. Claims filed to NITF on the disaster topped Rs. 3.9 billion. This year even thought the severity of the disaster was more the damage is less,” he said.
This year much of the damage has been to public property, not to private property, he said.
“The density of the houses in the affected areas is much lesser that it was last year. In 2016 in Kolonnawa alone there were 70,000 damaged. This year total number of houses damaged is 23000.”
The NITF hopes to set a deadline for the claim forms to be sent to the DMC, to avoid delays in payment of compensation experienced by claimants last year.
De Silva said that although there was no reinsurer to absorb part of the cost, NITF is able to withstand the financial setback.
“We will be able to remit the full amount to the treasury,” he said.
