Say insurance companies deny natural calamities under existing schemes
BK News
Lassipora (Pulwama), Jan 31: Stating that recent snowfall has heavily damaged various industrial units in Kashmir, MSME industrialists operating from IGC Lassipora demand insurance cover for industries vulnerable to natural disasters.
While the MSMEs, in general, have been affected by the natural disasters, the recent snow fury particularly has caused huge damage to a number units, including factory structures and sheds, the industrialists said.
“I haven’t witnessed such a heavy snowfall in my lifetime. It enormously damaged a number of industrial units here. My own factory shed was damaged by snow, which also damaged machinery due to roof collapse,” said former senior vice president of FCIK and a prominent industrialist of IGC Lassipora, Haji Mohammed Muzaffer.
J&K Government needs to understand that such disasters have a larger impact on the MSME performance, he said.
“Therefore, we request the government to cover such natural calamities under insurance, for which we already pay premiums. But unfortunately, the insurance companies decline our claims calling it an ‘Act of God’, which is unfortunate,” he said.
The industrialists sought government intervention so that the insurance companies are made accountable for paying the damage.
“We want the government to act as an initiator in this process. Besides, as the main damage here is on sheds and equipment, the government agencies should procure capital and distribute to the relevant firms, who have faced the damage,” they said.
As natural disasters are unpredictable, full prevention is not possible. Disaster risk can be minimized by introducing insurance schemes. But, it is not possible for MSME to pay high insurance premium themselves separately. The government needs to step in as a premium sharing partner allowing all MSMEs to get the protection, if the insurance companies fail to cover such calamities under comprehensive insurance, they said.
Industrialists said the authorities should think about rebuilding infrastructure on modern lines, creation of well-planned industrial zones and establishing business development services.
“In Kashmir, we are being challenged by disaster after disaster. COVID19 is not the only crisis that J&K has faced in the last two decades. Therefore, we request for Lt Governor’s intervention for helping us out,” they said.
