Due to the pandemic, insurance companies are thinking to stop the property insurance covers they have given to many businesses. It is because of the norm of 30 days they have. According to their terms and conditions, if the insured property is unoccupied since 30 days, the insurance will be over. And since the lock down has extended, many businesses will lose it.
The insurance broker association of India has also written to make it clear-“As the current lockdown period cumulatively has been extended beyond 30 days, insurers should take cognizance of the current state of affairs and treat these as ‘extraordinary and one-off situation’. We request the authority to advise the insurers of the same in the interest of the policyholders,”
The base policy of any insurance of business is the fire insurance and the other add ons are like accidental damage, damage in stock, losses due to natural disaster, rent loss and etc.
Since the lockdown has been extended more than 30 days, the insurance companies have written about the cessation of the cover. It means that businesses should ensure that it has enough secure guards, camera which are in use, fire extinguishers, sprinklers and etc.
The managing director and principal officer of SecureNow,in, an insurance firm, Abhishek Bondia said- Businesses are pointing out that while they are trying their best to comply to all these requirements, but it’s not possible to be fully compliant to them during the lockdown,”