While both the Karnataka and Andhra Pradesh governments are yet to announce a compensation to the families of the 45 killed and 7 injured in Wednesday’s bus inferno, it is learnt that since the vehicle was comprehensively insured, the damages to the bus and liabilities to third parties (dead passengers and injured) are covered under the policy.
The approximate claim amount for both the owner and the third parties is projected to be nearly Rs 25 crore ($4 mn), which is reportedly going to be given to the owner of the bus, Uma Reddy, and the victims’ families. The bus was insured by HDFC ERGO. Preliminary investigations revealed that the insurance cover of the bus is said to be valid till September 13, 2014, says Shakeel Jabbar, the owner of Jabbar Travels.
Sources said the Insured Declared Value – IDV for the multi-axle vehicle is approximately Rs 65 lakh and the insurance company has to pay the complete value since the vehicle is beyond repair, making it a total loss; but this decision is reportedly subject to the submission of valid documents by the bus owner to HDFC ERGO.
Read the full report here, Deccan Chronicle