The Insurance Regulatory and Development Authority of India (IRDAI) has said that insurance companies that offer insurance for home structures should provide coverage for accidental deaths caused by gas cylinder explosions, under such policies. The new regulation was proposed by a working group that prepared a report on fire insurance for shops, offices, and dwellings.
The apex insurance regulator said that coverage for cylinder and stove blasts must be covered under insurance as nearly 4,000 people succumb to such incidents every year, in India.
The report also stated that a single product should be offered for fire and other related perils for buildings of any value. The IRDAI believes that products, offered currently, that have varying coverage should be withdrawn.
Three categories of home insurance have been proposed in the report – home insurance for homes and its contents, micro-commercial insurance for commercial spaces, and small commercial insurance for bigger commercial spaces. While micro-commercial insurance will cover enterprises that have assets at risk valued up to Rs.5 crore, small commercial insurance will cover enterprises that have assets at risk valued above Rs.5 crore but less than Rs.50 crore. The building, stock, trade equipment, plant, and machinery will be covered under the insurance policies.
Addressing the issue of the lack of insurance cover against catastrophic incidents, the working group stated that catastrophic perils should be covered under the base insurance policy for dwellings and commercial spaces.
Source: Money Control