Risk Firms Told To Settle Gujarat Riot Claims

Insurance companies will have to pay up all claims arising out of looting that took place in the Gujarat riots. The Insurance Regulatory and Development Authority (Irda) has directed the Tariff Advisory Committee (TAC) to revise its earlier decision and issue a clarification to all insurance companies. The TAC had last month said that claims arising out of looting in riots will be excluded from payment under the riot endorsement clause in the fire policy.

Following the riots in Gujarat, many shops were looted, but with the exception of the New India Assurance Company, none of the other three state insurance companies were willing to pay up claims, stating that