Shriram General’s Fire Loss of Profit insurance gets sandbox nod

Shriram General Insurance fire Loss of profit product has got sandbox nod. This product covers the loss of gross profit or income and / or the increase in working costs due to the decrease in sales / production of the business caused by the covered danger.

Under the offer, liability is held under the profit loss policy in the event of such loss due to the risks mentioned, without enforcing a material damages policy.

Traditionally in India, the policy on loss of profits from fire (FLOP) is conditioned on the policy on property damage (fire). This means that liability under FLOP will only be granted if the policy on material damage is in effect and the policy on material damage has been paid or liability for the asset has been granted.

As a result, profit loss insurance (also known as business interruption insurance or consequential loss insurance) is usually sold with fire insurance or machine failure insurance.

According to the company, “IRDAI launched a regulatory sandbox under the IRDAI (Regulatory Sandbox) regulation on July 26, 2019. Shriram General is under the second cohort. I applied for the product at. Application from September 15, 2020 to October 14, 2020.”

Shriram General Insurance said in a statement that it received regulatory sandbox approval for FLOP’s six-month test ground for new business models, processes, and applications. The insurance industry needs a sandbox approach to provide more convenient processes and protection for policyholders. The current approval is for 6 months from November 15th, but the extension may be based on achieving the goal.