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Insurance brokers call for securing coverage of properties in lockdown

Insured property should not remain unoccupied for a period exceeding 15 days or 30 days, policy coverage rule say

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GIC Re said the policyholder, using online facility, has to inform the insurer regarding non-occupancy of the premises and specific approval has to be sought of the insurer.

Subrata Panda Mumbai

2 min read Last Updated : Apr 28 2020 | 2:55 PM IST

A group representing insurance brokers has written to the regulator expressing its concern about the companies likely withdrawing coverage for properties due to the nationwide lockdown to contain the coronavirus.

Property insurance policies usually have a condition that says if an insured property remains unoccupied for a period exceeding 15 days or 30 days then the coverage ceases to exist unless the insurer’s consent is obtained in advance.

“Policyholders are concerned that since they are simply complying with the government imposed lockdown and not willfully keeping properties unoccupied, the withdrawal of cover or imposition of new onerous conditions and warranties

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