MC Explains | Why Supertech twin towers neighbours in Noida are denied insurance cover

Noida Twin Towers are set to be razed on August 28, and Edifice Engineering, the company responsible for the demolition, has taken out a Rs 100-crore insurance cover to safeguard against damage caused to nearby buildings due to the demolition.

Supertech’s Noida Twin Towers are set to be razed on August 28, and Edifice Engineering, the company responsible for the demolition, has taken out a Rs 100-crore insurance cover to safeguard against damage caused to nearby buildings due to the demolition.

Two societies neighbouring the twin towers—Emerald Court and ATS Green Village—are over a decade old. While Emerald Court's Aster 2 tower is just nine metres from the twin towers, some towers of ATS Green Village are just 35 metres from it. Altogether, three towers of Emerald Court and four towers of ATS Green Village fall within a 50-metre-radius of the Supertech twin towers.

While Edifice Engineering has said that vibration from the demolition won't have any impact on nearby buildings, residents of these towers are concerned about the demolition. While insurance covers the nearby towers, when some residents tried to get insurance for their individual flats, their request was declined.

What do experts say?

Experts said while damage by natural calamities like earthquakes or damage by fire, aircraft crash, riot, strike and missile-testing, etc are covered under general insurance, the case of the twin towers is different, where the damage is anticipated due to man-made circumstances which have not been a part of the policy.

Also Read: Residents of neighbouring developments to be evacuated on day of razing, to take along their valuables

"The buildings and flats of the nearby societies and their residents, even if insured under their standard fire insurance or home insurance policy, may not fully cover property damage losses. This is because the demolition is manmade and initiated by civil authorities, and therefore, the claims may be disputed by the property damage insurers. However, damages can be claimed from the demolition company/authorities as they are legally liable for any third-party property loss or damage as a result of their operations," said Sudhish Ramteke, Associate Director, Anand Rathi Insurance Brokers Ltd.

Ramteke said if any injury or death happens due to the demolition, third-party personal injury or death claims can also be claimed from the demolition company and authorities.

Also Read: Buyers in Supertech’s Twin Tower in Noida await refunds

'Call for a change in policy'

VK Bansal,  a senior RERA lawyer, said that the government should bring in a policy change to cover such scenarios. "Mostly, insurance is against natural calamities like earthquakes or floods. In the case of the twin towers, the building is being razed using detonators which is a man-made situation. Since this is a one-of-its-kind situation, the government should bring in a policy change to cover this as well. The government should issue a notification and provide cover to such people wherever the demolition of a building takes place. Since the firm carrying out the demolition, in this case, has taken an insurance cover of Rs 100 crore, any damage to nearby buildings will get covered in this policy. The residents whose flats get damaged may file a claim with the said company," said Bansal.

Know More: Noida Twin Tower Demolition: The Man Who Will Bring Down 32 Floors