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Non-Life

From Africa to America, businesses and insurers face survival showdowns

Businesses around the world, hamstrung by lockdowns, are facing often-existential showdowns with insurance companies that are reluctant to pay out on business interruption policy claims for a disaster unknown in living memory.

The insurers say many such policies exclude pandemics, require physical damage on premises or do not apply to the widespread lockdowns seen globally. Facing pressure from regulators, mounting reputational damage and a wave of lawsuits, they warn that paying out could sink their industry.

In some countries, including South Africa, France and Germany, insurers are now opening their chequebooks. But for many customers, these settlements or ex-gratia payments – voluntary payouts that do not imply legal liability – fall short.

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Alamelu Panel favours setting up of a Loss Prevention body for the general insurance industry, will aid reduction of premiums

The panel has suggested that the proposed company should be promoted by the IRDAI as well as the industry.

The company may start working on promoting safety and loss prevention in the areas of Property Insurance and motor Insurance to begin with and can expand into all areas of general insurance as well as health insurance in the future.
`The existing loss control practices of the insurers are incidental to the primary function of underwriting. Needless to state reducing the frequency and severity of losses would benefit both insurers and insureds, as the overall burning cost and consequently the premium rate would come down;,said the report prepared by the working group..

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US pharma cos protected from COVID vaccine liability

Pandemic-related claims for vaccines will be routed to a rarely used USA federal program set up to encourage drugmakers to help combat public health emergencies. It spares pharmaceutical and device makers from costly liability lawsuits in exchange for taxpayers compensating injured patients — though it doesn’t guarantee there’s funding to do so.“We want people vaccinated and we don’t want to expose pharmaceutical companies to the kind of liability that they would otherwise have,” said Brent Johnson, a partner with Holland & Hart, who defends corporate clients. “That’s the price we’re willing to pay to get rid of this horrible coronavirus problem.”

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Lebanon’s insurance claims from Beirut port blast total $425 million, so far

Caretaker Economy Minister Raoul Nehme said 2,500 claims have been filed, according to the presidency’s Twitter account. The ministry expects claims to reach 10,000

Insured losses from the Beirut port warehouse explosion are likely to total around $3 billion, similar to those from an explosion at the Chinese port of Tianjin in 2015, industry sources and analysts say.

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India’s coronavirus death toll surpasses 50,000,total number of tests cross the 3 crore mark

Implementation of testing aggressively, tracking comprehensively and treating efficiently through a plethora of measures have contributed to the existing high level of recoveries as well, it said. The total number of recoveries in the country rose to 18,62,258 on Sunday, according to official data.

Improved and effective clinical treatment in hospitals, supervised home isolation, use of non-invasive oxygen support, and improved services of the ambulances for ferrying patients for prompt and timely treatment have been the focus of the Centre and state and UT governments, the ministry said.

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Blow to WHO? EU clinches first Covid-19 vaccine deal with AstraZeneca

The European Commission, which is negotiating on behalf of all 27 EU member states, said the deal included an option to purchase 100 million additional doses from the British drugmaker should its vaccine prove safe and effective.

The EU’s bilateral deal mirrors moves by the United States and other wealthy states, some of which are critical of the WHO’s initiative, and further reduces the potentially available stock in the race to secure effective Covid-19 vaccines.
The EU move could complicate efforts led by the WHO and GAVI, a global alliance for vaccines, to buy shots on behalf of rich and developing countries with a separate scheme.

The Commission has urged EU states to shun the WHO-led initiative because it sees it as too expensive and slow, EU officials told Reuters in July

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