In view of last year’s November 26 Mumbai terror attacks, the hotel owners of Gujarat have now started opting for insurance policies with add-on terrorism cover.
Gujarat is on high alert and over 70 per cent of the hotels in the state, which includes even two and three star ones, have opted for such insurance policies.
Recently, the Southern Gujarat Hotel and Restaurant Association called a meeting of its members, apprising them of the steps to be taken in case of such terror attacks. The insurance company representatives were also called at the meeting and asked whether they are providing any terrorism cover to the hotel premises.
Association vice-president Sanat Relia said: “We make our members aware about the new government policies for hotels and restaurants. Earlier, during the 2001 earthquake, we had called insurance experts and they guided our members on the requisite policies. After the 26/11 attacks, we have once again called a meeting of the members and tried to convince them to go for policies with add-on terrorism cover.”
The Gujarat State Hotels and Restaurant Association had also called a meeting of their members to acquaint them about the insurance policies covering terrorism.
Association president Naresh Somani said: “Such incidents can take place in Gujarat and it is better to go for precautionary measures. The insurance policies have only minor premium charge, but in return they offer terrorism cover to the properties.”
Sunil Varlekar, a property insurance expert told The Indian Express: “The policies with add-on terrorism cover have minor charges, which is 0.20 paisa per thousand. The present cost of property, in addition to furniture and other valuables inside the premises, depends on the sum assured. The agents are not explaining much to the customers as they don’t get commission on the money paid on terrorism cover. The hotel owners were earlier mostly going for the third party insurance, but now they are opting for policies with add-on terrorism cover.” By Kamaal Saiyed, Indian Express
