Traders' body wants 'disruptions' cover

Tribune News ServiceNew Delhi, March 15

Amid concerns of business and economic disruption due to coronavirus pandemic, the Confederation of All-India Traders (CAIT) has asked the government to direct insurance companies and the regulator to come up with insurance policies.

In a letter to Finance Minister Nirmala Sitharaman, it has said that insurance companies may be mandated to introduce ‘Disruptions due to Coronavirus’ as additional cover to ‘Fire and Materials Damage’ policies.

“It is pertinent to note that business interruption insurance available abroad in different countries, cover loss of income suffered by a business as a result of disruption to their operations and, therefore, we request you to kindly advise the Insurance Regulatory Development Authority (IRDA) to mandate insurers in India to introduce insurance coverage for disruptions in business due to coronavirus,” the letter read.

CAIT secretary-general Praveen Khandelwal noted that several educational institutions, cinema halls, gyms and other service-oriented businesses had been shut temporarily. He also said that traders and shopkeepers had a higher risk of being exposed to the deadly virus.