Phoenix Mills Ltd. has achieved a groundbreaking milestone by becoming the first Indian company to obtain pandemic-related business interruption insurance through a parametric policy. This innovative step represents a major advancement in the domain of risk management within India.
Key Highlights
- Phoenix Mills Ltd. pioneers the use of parametric insurance for pandemic risks in India.
- The policy covers business interruptions specifically caused by pandemic events.
- This approach offers a more efficient and transparent claims process compared to traditional insurance.
Significance of the Development
This move by Phoenix Mills Ltd. is significant for several reasons:
- Innovation in insurance: Parametric insurance pays out based on predefined triggers, such as government-declared lockdowns during pandemics, rather than requiring proof of actual loss, expediting claim settlements.
- Risk Management: Incorporating pandemic-related cover mitigates financial losses stemming from unforeseen interruptions.
- Market Leadership: Set a precedent for other Indian businesses to adopt similar coverage strategies to safeguard against future pandemic or epidemic risks.
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