Shopkeepers' FAQs on CoverageGet answers to some basic question about coverage in case of a Shopkeeper's insurance policy.
Apnainsurance.com Research Bureau
05 Feb 2008
In case of an earthquake or heavy rains, will damages caused to the shop be covered under the policy?
If the shop has been insured i.e. a separate risk cover for the shop has been purchased, then damages in case of an earthquake or floods can be claimed.
If there has been a short circuit in the shopping centre that caused a fire and damaged my property, can I claim damages from my society?
If the shopping center has been insured, then the spread of fire to insured premises is covered, you could claim damages.
Suppose my shopping centre is insured but I don't have any shop insurance; and the fire in my neighbor's shop damages my property as well, can I claim damages from the society?
Yes; if the fire damages the structure of your shop, you could claim damages from the society.
However, if the fire damages the contents of your shop, you have another option. You have the option of proceeding legally against your neighbor and suing for damages. Your neighbor, in turn, could claim such damages suffered as third party liability from his/her insurer. All this is of course dependent on the fact that the relevant policy and section have been purchased by your neighbor.
If I rent out my shop, will my tenants also be covered under the policy?
A person who is the rightful owner of the property can purchase insurance for the asset; if you own the shop, you may purchase the insurance policy for the structure of your shop.
In case your tenants want to insure the contents of the shop, they have to purchase a separate shopkeepers' insurance policy for their inventory and assets.
If my employees are injured in an earthquake in the premises, are they covered under the Workmen's Compensation plan?
The Workmen's Compensation schedule under the Shopkeepers' Insurance plan covers the Workmen's Compensation Act 1923, Fatal Accidents Act 1855, and Common law. It provides cover to pay compensation to employees for bodily injury or death caused due to accidents, occupational diseases arising out of or in the course of employment.
it is important to note here that injuries or damages arising from an earthquake or other natural calamities are excluded from the plan.
If my employees are injured in an accident in the premises, are they covered under the shopkeepers' insurance plan?
Yes, provided you have purchased the Workmen's Compensation Plan. It provides cover to pay compensation to employees for bodily injury or death caused due to accidents, occupational diseases arising out of and in course of employment.
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