Considering the nationwide lockdown, the General Insurance Council, which is a self-regulatory body of the country’s general insurers, has announced a one-time exemption for all businesses from losing their fire and property insurance coverage for keeping facilities shut down for a month due to the lockdown.
Considering the ongoing circumstances presented due to the pandemic, all non-life insurers have decided to offer an extension subject to certain terms and policies. As per general policy terms, fire and property coverage ceases to continue if the insured building or property remains vacant for a period of 30 days. The insurance body’s decision is anticipated to bring relief to millions of businesses across the country that have been shut down after the lockdown announcement due to the Covid-19 pandemic spread.
As per the council, this one-time relaxation covers all policyholders whose property is vacant on or after March 25, when the lockdown started, till May 3. Private insurers have insisted on explicit written requests from the businesses seeking policy continuity, prompting brokers to take the matter to the sector regulators.
Insurers have stipulated a set of conditions for continuity of insurance policies, which include ensuring round-the-clock security services at the insured premises, fire protection infrastructure, and emergency trained staff, among others.
However, the state-owned insurers have further decided to exempt their clients from such conditions, some private sector non-life insurers last week had warned businesses about the clause of unoccupancy and cessation of work that will impact the continuation of policies.