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Maharashtra Leads in Mandatory Insurance for Shops and Establishments

First State to introduce Mandatory Coverage

Maharashtra is set to become the first state in India to make insurance coverage mandatory for shops and establishments registrations. The state’s labor department has released a draft notification proposing the inclusion of insurance in the Maharashtra Shops & Establishment Rules.

Mandatory Insurance Coverage

As per the draft notification, the insurance policy number and its validity will be integrated into the certificate issued under these Rules. This proposed insurance is akin to third-party vehicle insurance and is expected to cover fire and allied perils, including damage or destruction caused by fire, lightning, or explosion. This move aims to enhance the protection of shops and establishments in the state.

Objections and Suggestions Invited

Stakeholders are encouraged to submit their objections and suggestions regarding this mandatory insurance requirement by September 16, 2023. The draft rules also suggest that an establishment’s insurance certificate must be included as a mandatory document for filing various forms related to registration and renewal.

Background on Public Liability Insurance

This development aligns with a broader discussion on public liability insurance (PLI) in India. Moneylife Foundation had previously released a report advocating mandatory PLI for all public spaces. The Bombay High Court had also taken note of this suggestion in a case related to road maintenance, emphasizing the importance of PLI for the victims of such incidents.

The move to make insurance mandatory for shops and establishments in Maharashtra is a significant step toward enhancing safety and risk management in the state, ensuring that businesses are adequately protected against unforeseen events.


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