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 the company’s insurer.

“Chennai Silks is reported to have taken insurance cover to the tune of ₹40 crore for the property that went up in flames after a fire broke out on Wednesday morning,” according to a senior official of New India Assurance Company, with which Chennai Silks has insured its Chennai store and other shops.

Norms violation charge The seven-storey textile-cum-jewellery showroom, located in the busy commercial hub of the city, T Nagar, was also facing charges over alleged violation of building norms.

This is will be the first big claim of Chennai Silks for losses due to fire in the property. It had earlier claimed loss of ₹1.5 crore for damage to its property in Trichy some years ago.

“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,” said the official.

Stress on insurance cover “Nowadays, insurance companies educate the people on property insurance and make sure that commercial establishments take adequate cover against fire and other disasters. Banks also encourage customers who take large loans to get adequate property insurance cover,” he added.

The Chennai Silks was founded in 1962 in Tirupur by Kuzhandhaivelu Mudaliar. It has 15 showrooms across South India. The group’s showrooms witness a footfall average of about 20,000 daily during festivals like Diwali, Pongal and Aadi sales. They also run the jewellery outlet Shri Kumaran Thanga Maligai, attached to the textile showrooms.

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