Shriram General Insurance has bagged the regulatory sandbox approval to launch an innovative concept, Fire Loss of Profit insurance cover.
The product covers loss of gross profit or income, and/or increase in the cost of working due to reduction in business turnover/output caused by covered perils.
Under Shriram General’s offering, liability will be admitted under the loss of profit policy when such loss is caused because of the mentioned perils without any compulsion of material damage policy.
Traditionally in India, Fire Loss of Profit Policy (FLOP) is contingent upon Material Damage (fire) Policy.
Insurance Regulatory and Development Authority of India launched the regulatory sandbox on Jul 26, 2019 under the IRDAI (Regulatory Sandbox) Regulations, 2019. Shriram General applied for the product under the second cohort, which was open for applications between September 15, 2020 and October 14, 2020.
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Anil Agarwal, MD & CEO of Shriram General Insurance Company said, “The regulatory sandbox initiative has allowed us to create an innovative and compelling, yet simple product. The company is targeting 10,000 policies on a pan-India basis. Business enterprises, especially smaller business units, have withstood the COVID-19 pandemic despite several challenges. Our priority and endeavour has been to provide them with solutions that can offer contextual value and support their growth journey. We believe the non-binding, first-of-its-kind Fire Loss of Profit Policy will cement our relationship, and help us prove to be steadfast partners of the small business community.”
