If there is insurance, there will be no financial loss due to rain and flood, but the trend is less in India

Recently, floods affected the states of Himachal Pradesh, Jammu and Kashmir, Uttarakhand, Punjab, Uttar Pradesh, and Delhi in North India. According to the estimates of SBI Ecowrap, due to this flood, there was an economic loss of 10-15 thousand crore rupees. But with the help of insurance, this economic loss could be reduced to a great extent.
According to the report, in the year 2020, there was an economic loss of Rs 52,500 crore in the country due to floods. Only 11 percent was covered by insurance. Because less than five percent of MSME businesses in India get insurance for this type of compensation. In India, whether commercial or residential, only 0.9 percent of the properties are insured while in the US, 90 percent of the properties are insured.
Insurance sector experts believe that if small businessmen and MSMEs get business insurance, then their losses can be compensated to a large extent. Property Insurance, Business Interruption Insurance, Marine Insurance, Engine Seize Insurance but the financial loss can be reduced significantly. Kapil Mehta, co-founder of SecureNow Insurance Broking, said that all small and big businessmen should take property insurance.
This insurance covers the home and office against fire, earthquake, and flood. While taking this type of insurance, make sure that the cover for riots, strikes, malicious damage (RSMD), storms, storms, and floods is also included in it. During heavy rains, the basement usually gets flooded and the wall collapses. If the property is insured, then the insurance company will pay the cost of its reconstruction.
If the shop or factory is closed due to floods, then the insurance company will compensate for the loss of income during that time. According to Mehta, it is an extension of property insurance. This is very useful for small businessmen because even sitting idle for a few days can shut down the small business. Marine insurance is essential for traders whose goods move from one place to another by sea.
This insurance comes at a very low cost. This insurance covers damages caused by delays in the delivery of goods due to rains and floods. According to experts, the premium for this insurance is only Rs 500 for goods worth five lakhs. Buying motor insurance with engine seizure extension is useful in rains and floods.
If the engine seizes by starting the engine during a flood, and you do not have an engine seizure extension, your claim will not be paid. According to experts, due to a lack of awareness in India, businessmen do not get insurance. Insurance companies also do not encourage the sale of such products and there is no separate effort by the government to insure small businesses.
Soumya Kanti Ghosh, Group Chief Economic Advisor, SBI, believes that the government should bring such insurance products to compensate for the economic losses caused by natural calamities like floods. In many countries, insurance bridges have been created with the help of the government, which provide coverage to a certain population at certain risks.