CAIT writes to FM seeking insurance cover for disrupted business due to Coronavirus

New Delhi, Mar 16 (KNN) In order to cover the disruption caused to businesses due to coronavirus, the Confederation of All India Traders (CAIT) has asked the government to direct the insurance companies and the regulator to come up with insurance policies.

In a letter to Finance Minister Nirmala Sitharaman, the traders' body suggested that insurance companies may be mandated to introduce 'Disruptions due to Coronavirus' as an additional cover to 'Fire and Materials Damage' policies and the existing policyholders may be offered an option to add the clause of 'Disruptions due to Coronavirus'.

CAIT Secretary General Praveen Khandelwal said tha both trade and MSME sector is likely to have negative economic impact as many industries and trade may end up closing or face disruption in supplies, cancellation of events, contracts, travel among others and each of these have significant costs associated.

The traders' body further said that business interruption insurance is available abroad in different countries, which cover loss of income suffered by a business as a result of disruptions to their operations.

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