The Insurance Regulatory and Development Authority of India (IRDAI) on Thursday advised non-life insurers to inform policy-holders about properties remaining unoccupied after May 3 and the policy-holders to read the policy conditions.
In a statement, the IRDAI welcomed the stand of the general insurance industry to continue to extend insurance cover for properties covered under their fire insurance policies though they remained unoccupied for over 30 days.
The IRDAI said this gesture of giving one-time relaxation for the properties unoccupied during the national lockdown between March 25 to May 3, is in the interest of policy-holders given the current unprecedented situation.
As per the fire insurance policy condition, the insurance cover ceases to exist if a property remains unoccupied for more than 30 days.
"The General Insurers have been advised by the Authority to inform the policy-holders of how the relevant clause(s) would apply beyond 3rd May 2020 in all policies and what action is needed by the policy-holders to avail the uninterrupted coverage.
"The insurers need to take a reasonable and suitable approach depending on the local situation in different geographies," IRDAI said.
The IRDAI also asked the policy-holders to read their policy conditions and be aware of the policy requirements in case they or their insured properties are located in areas where there will be prolonged restriction of movement.
( With inputs from IANS )