Contractor accuses Sagarmatha Insurance of duping
BARA: A construction contractor has filed a complaint at Insurance Board against non-life insurer Sagarmatha Insurance accusing the latter of failing to pay insurance claim amount as per the contract between the two.
Gautam Construction Services, the company that bagged a construction contract of Nepal Electricity Authority laid charges against the insurance company for non-payment of Rs 2.9 million in insurance claim.
The contractor had paid a premium of Rs 53,000 to insure against the losses if any faced during construction of structures supporting towers in the national transmission grid at Piluwa-Parwanipur. Moreover, the insurance company had underwritten a policy worth Rs3.5 million with a clause to cover losses bore by the contractor during construction.
The project suffered heavy losses after floods at Dudhara River swept away the nearly finished structures. However, the insurance company had permitted the contractor to reconstruct the project assuring coverage of losses.
According to construction company Operator Rajendra Gautam, it has been eight months since the company reconstructed the structures and filed for payment of claim amount. However, the insurer is yet to release payment.
Gautam Construction filed a complaint at the Board after a surveyor from insurance company estimated a loss of Rs 2.9 million but the insurer only covered Rs 4,26000 and denied payment of the remaining sum.
Meanwhile, Head of Claim Department of Sagarmatha Insurance, Subas Dixit said that the company cannot cover losses of the amount demanded by Gautam Construction Services and will now await decision from the Insurance Board.