The decision was taken at a meeting the chamber had with representatives of GIC, New India Assurance company and various trade associations. About 7,000 claims have been filed so far with the insurance companies. Representatives of associations of dealers selling consumer items, like televisions, also attended the meeting as claims of damages of these items ran into nearly Rs 8 crore.

While dealers insisted that respective companies should take back goods with warranty period and pay full amount to the owner, insurance companies agreed to only compensate the repairing charges. However, the meeting could not arrive at any decision on this point.

The insurance companies have promised to give a reply after consulting the finance minister within eight days.

In response to a chamber plea for ad hoc relief to help industries get back on their feet soon, the insurance companies asked for a week's time to reply.

The companies have agreed to pay Rs 5200 per loom; Rs 40,000 per twisting machine and compensation for nylon and polyester in proportion to damage. However, claimants were unhappy with the fixed-compensation amount saying cost of machines and spare-parts differed with company.

The meeting found a way out for such claimants and said that while those who were happy with the formula would get compensation accordingly, others would have to prove that the items were costlier.

While the chamber has asked claimants to approach it with claim-related disputes, it said that the committee's decision would be binding on insurance companies.