New India Assurance to assess losses incurred due to fire at Chennai Silks

Last Updated: Jun 02, 2017 | 297 Views
Chennai Silks showroom at T Nagar was burnt down due to a fire that broke out on Wednesday around 4:30am and has suffered massive losses ranging in crores of rupees. Since the fire broke out well before business hours, no one was injured. Reports suggest that Rs.80 crores worth of textiles have been destroyed due to the intense heat as the fire raged over 30 hours. 

The popular multi-storied textile showroom has an insurance cover from New India Assurance Company Ltd to the tune of Rs.40 crores. It was previously insured by National Insurance Company

As per documents, the facade of the building was constructed in gross violation of rules and a significant portion of the front of the structure collapsed from the intensity of the heat. 

Though one of its flagship stores was destroyed in fire and losses are being assessed, Chennai Silks’ fire insurance cover is expected to help recoup a significant portion of the losses, 

According to a senior official of New India Assurance Company, “The claim process will take six months to one year for such big claims as various parameters have to be assessed before arriving at the final settlement”.