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Insurance cover for tenants of shaky buildings

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Express News Service

Posted: Feb 18, 2009 at 0404 hrs IST

Mumbai Tenants in 16,252 old, dilapidated buildings in the city will be insured against buildings collapses that claim several lives year after year. It will cover tenants who pay regular cess to the Repairs and Reconstruction Board of MHADA. The plan was mooted on Tuesday during the presentation of the Board’s annual budget.

“We have proposed that over and above the Rs 1 lakh compensation given by the state government, MHADA should provide a higher compensation for all victims. MHADA will pay the premium,” said Sachin Ahir, chairman of the Board. Ahir added the exact allocation will be decided soon.

The Board has announced a budget of Rs 87 crore for 2009-10 as against Rs 60 crore last year. A substantial allocation has been made for redevelopment of several of MHADA’s 56 transit camps, meant to provide temporary accommodation for tenants of run-down buildings. The camps will be redeveloped using a FSI of four.

As per MHADA’s master list, over 2,000 people have been living in the tenements for over 20 years. “Their buildings could never be reconstructed as they got stuck in court cases, road widening, CRZ norms or various reservations. Post redevelopment, they will be housed in the new structures,” said Ahir.

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