Insurers not to withdraw flood cover: IRDA

In a bid to assure those affected by torrential rains in Maharashtra, insurance regulator IRDA on Thursday said public and private general insurers will not withdraw flood cover for homes and commercial establishments.

"Neither the IRDA nor the insurance companies are contemplating withdrawal of the flood cover, as part of Standard Fire and Special Perils Policy, for homes and commercial establishments," Insurance Regulatory and Development Authority chairman C S Rao said in a statement.

The IRDA's assurance comes in the wake of reports that insurers are contemplating withdrawal of such cover following heavy damages caused by flood in Maharashtra and Gujarat.

Terming the news item quoting its member, P A Balasubramanian that such a proposal was mooted by officials of insurance companies as "speculative", Rao assured that the member had not made any statement to that effect.