New Delhi: Finance Minister P Chidambaram on Tuesday asked state-run Life Insurance Corporation (LIC) to constitute a special team and set up a big camp office in Dehradun to settle insurance claims of victims of flash floods in Uttarakhand.
The Minister, according to a release, has asked the LIC to do away with the normal condition of seven years waiting period for settlement of claims in cases of missing persons.
Under the existing norms, a death certificate is issued after a gap of seven years in case of missing persons.
"LIC should follow the same norms for settlement of claims as being followed by it during Tsunami or earthquake in Bhuj and Latur in the past", Chidambaram said told senior official after inaugurating 300 mini offices of LIC here.
In this precarious situation, he said, an indemnity bond can be taken from the claimants and the claims may be settled on priority.
He later told reporters that "LIC would do whatever needs to be done to help the families of deceased."
According to reports, about 5,000 people are feared to have died in the flood and landslides in Uttarakhand. So far 822 bodies have been recovered and 8,000 people are still stranded and efforts are being made to evacuate them.
Acting LIC chairman Thomas Mathew T assured the Finance Minister that all the claims of those affected by the recent natural calamity in Uttrakhand will be dealt with the highest priority and will follow the simplified norms in order to settle the claims at the earliest.
LIC will publicise its relaxed norms for Uttarakhand calamity victims through advertisements in next 2-3 days.
The state government, meanwhile, has decided to photograph and maintain DNA profile of unidentified victims.
Chidambaram in his Budget had announced target of opening LIC offices in all the towns with a population of 10000 or above by March 31, 2014.