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Is your society insured?

Friday, March 10, 2017

One of the purposes of registration of the co-operative housing society is to protect the property of the society from any damages and losses. Ramesh S. Prabhu explains how insurance is the best way to tackle the issue.

We take insurance cover for everything from medical emergencies to our life itself and even our mobiles. Then why not for our homes? As per the bye-laws of the co-operative housing society, taking the insurance of the building has been made compulsory. But, even otherwise, it is wise to go in for safety than regret later.

There can be many accidents in the society and the entire property of a society could also get damage. During the floods in Mumbai in July, 2005 many societies lost their properties as they had not insured their building. Some of the societies who had insurance got lakhs of rupees in claims over damage of compound wall, electric fittings, etc.

Yours is a bustling residential complex. Your co-operative society is entrusted with managing the affairs of the society, handling staff and managing administration. We know you have little time to think about managing all the risks involved, but with little security your building and residents are often exposed to various risks and liabilities.

There are many general insurance companies who offer a complete insurance package that has been specially designed keeping in mind the insurance needs of your society. It is a one touch insurance solution that covers you and your society from threats like, fire, malicious damage, riot, earthquake, burglary, damage to property etc.

What does this insurance cover?
Co-operative housing societies are entrusted with managing the affairs as per guidelines of the Co-operative Societies Act and additionally handling staff and managing administration.

This insurance offers risk solutions suitable to most of housing societies'insurance requirements.

Standard Fire and Special Perils

  • Covers your property against loss or damage due to Fire
  • Lightning Explosion / Implosion
  • Aircraft damage
  • Riot strike and malicious damage
  • Storm, cyclone, typhoon, tempest hurricane, tornado, flood and inundation
  • Impact damage due to rail road vehicle or animal not belonging to insured, Subsidence and landslide including rockslide
  • Bursting and/or overflowing of water tanks apparatus and pipes
  • Missile testing operations
  • Leakage from automatic sprinkler installations & Bush fire

What are the other covers available with this insurance?
You can opt for the following optional covers below:

  • Burglary: Covers all contents (covered under Standard Fire & Special perils) against Burglary or Housebreaking (theft following upon an actual forcible and violent entry of or exit from the premises), or Holdup including Robbery
     
  • Money in Safe: Covers loss of money (cash, bank notes, currency notes / coins, bank drafts, cheques, postal orders, money orders, treasury notes, current postage and revenue stamps) belonging to the business of the insured whilst securely kept in the insured premises and loss or damage to any safe, strong room or cash box securing money
     
  • Workmen's Compensation: Covers You for your liability under the Workmen's Compensation Act' 1923 and /or Fatal accidents Act'1855 and / or Common law to pay compensation to employees for bodily injury or death caused due to accidents/occupational diseases arising out of and in course of employment
     
  • Public liability: Protects You against your legal liability in respect of accidental bodily injury to third parties and or accidental loss and /or damage to property belonging to third parties

Who should buy?
This policy provides insurance for Housing Societies including :

  • Residential Housing Society
  • Employee/Staff Housing Society

What is not covered under this Insurance?
Standard fire & Special peril

  • Loss, destruction or damage caused by  War or war like operations
  • Ionizing radiations, contaminations by radioactive, nuclear fuels or waste
  • Pollution or contaminations losses
  • Losses of earnings or loss of Market

Burglary
Loss, Destruction or damage caused by:

  • Fire or explosions
  • Inmates or member of the insured's household or business staff

Money:

  • Loss, destruction or damage caused by Collusion by any employee or agent of the Insured
  • Use of keys or duplicate keys
  • Use of counterfeit money

Workmen's compensation
Liability arising out of:

  • Willful or intentional non compliance of any statutory provision
  • Fines, penalties, punitive and / or exemplary damages
  • The societies should demand the policy wordings for complete list of detailed exclusions from the Insurance company.

The insurance premium is going to be very nominal depending on the policies that the societies opt. In the case of normal course for an insurance policy of Rs.3 crore to Rs.4 crore, the insurance premium works out to Rs.15,000/- per annum to Rs.20,000/- per annum. Such insurance premiums are negligible compared to the loss that the society may suffer on account any accidents.

(Ramesh S. Prabhu is Chairman, Maharashtra Societies Welfare Association)

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