Maharashtra will become the first state in the country to have mandatory insurance coverage for shops and establishments registrations. According to a report, the Maharashtra government's labour department has issued draft notification to add insurance in Maharashtra Shops & Establishment Rules.
According to the report from ETNow
, insurance policy number and validity of insurance policy would be added in the certificate issued under the Rules.
According to the draft notification, the proposed insurance would be similar to third-party vehicle insurance. Insurance coverage for fire and allied perils would be mandatory for every shop and establishment. The insurance would also be expected to cover damage or destruction caused by fire, lightning or explosion, the report says.
As per the draft notification issued by the state government, stakeholders have to submit their objections and suggestions by 16 September 2023 on the mandatory insurance for shops and establishments in Maharashtra.
The draft rules propose to include a copy of the insurance certificate of the establishment as a document which needs to be submitted while filing form a (application for registration), form d (application for renewal of registration), form f (intimation of commencement of business by employer employing less than 10 workers) and form r (annual return).
In March this year, Moneylife Foundation released a 'Report on Public Liability Insurance (PLI) in India'. The Report is a 360-degree perspective on the rules and regulations governing liability insurance, its functioning and operability – both for massive public tragedies like Bhopal Gas (which led to the enactment of the Public Liability Insurance Act) and the subsequent evolution of commercial liability products in line with contractual mandates of global commercial organisations. (Read: Moneylife Foundation's Report Seeks Mandatory Public Liability Insurance in India for All Public Spaces
Next month, the Bombay High Court (HC), while hearing a case of non-repair and non-filling of potholes on roads, asked BrihanMumbai Municipal Corporation (BMC) to respond to the suggestion of requiring PLI.
In an order, the bench of the then acting chief justice SV Gangarpurwala and justice Sandeep V Marne said, "The amicus curiae has also raised the issue of public liability insurance. Same also would be required to be considered by the respondent municipal corporation. The Corporation may also make submissions in respect of the same."
In March, advocate Jamshed Mistry and advocate Dipesh Siroya, the amicus curiae in the case, had submitted the 'Report on Public Liability Insurance in India' prepared by Moneylife Foundation before the bench. At that time, the HC remarked that PLI was a very good suggestion, especially for the victims of such incidents. (Read: Bombay HC Asks BMC To Respond to Suggestion on Public Liability Insurance