Skip to main content

short note on claiming business losses

                                    CLAIM BUSINESS LOSSES

  • There are many insurance companies that provide Business Interruption Insurance also known as Business Income Insurance. 

  • Business Interruption Insurance is a insurance policy provided by the insurance company to the business on the account of any unforeseeable event that causes damage to the business

  • There are 3 types of commercial insurance, are

  1. That protects against the loss of income

  2. That a business suffers as a result of a covered peril 

  3. That triggers a suspension of its activity

  • The issue that arise today is the disruption caused by the COVID19 that is not mention expressly in any clause of the insurance policy.

  • Insurance companies also plea that loss suffered in connection with Covid19 not covered in the insurance policy and such losses of business income must be direct cause of physical damage of property

  • There are some cases where Insurance Companies excludes losses in connection with virus which eliminate coverage for some type of risk & narrow the scope of coverage provided by the insurance agreement.

  • In order to claim damages from the Insurance company on the disruption of business due to Covid19 analysis of insurance policy, go thorough all the terms carefully to determine how coverage would impact any given loss situation.

  • Look for key terms that cover in your insurance policy like storm, Hurricane, Tornado, Earth quack, Fire, Explosion, Flood, etc. if policy cover so, then Covid19 pandemic being of same general nature or class as those enumerated is included rather than excluded. All these involve substantial damage to property, Hardship, Suffering, or possible loss of life.

  • The Government of India impose national lockdown considering Covid19 as a disaster under Disaster Management Act, 2005.  

  • The Supreme Court of Pennsylvania in the case of De Vito V. Wolf (2020) challenge the Lockdown imposed at national level. National lockdown impose under emergency provision considering the Covid19 pandemic as a disaster. 

  • Damage indicates some injury which is not necessarily physical but may loss of use. 

  • There are provision regarding contingent Business Interruption coverage in which businesses are unable to operate because of an event/damage in the business premises of one of its supplier or consumer, 

  • Look for provision that covers for loss due to Denial of Access Provision the element for coverage.

  • It is mandatory to send notice to the insurance company about the losses occurred to your business. IRDAI also advised not to reject claim without ascertaining the reason and recording the same. 

  • In the case of Shree Bank V. S.D. Roy & CO. (1953) private bank fail due to period limitation due to which depositor suffer loses. Government implement Banking Regulation in order to increase period of limitation in retrospective effect. 

  • In the case of Mithilesh Kumari V.  Prem Behari Khare (1989) parliament has jurisdiction to pass a declaration legislation law for the benefit of individual & community as a whole. 

  • In the case of JP Bansal V. State of Rajasthan (2001) the court held that when there is no ambiguity & words are clearly express & intention of legislation there is no scope to innovate with the provision.

  • In the case of Union of India V. Unicorn Industries (2019) Supreme Court held that parliament cannot withdraw benefits after huge investment of the investor in the business for the welfare of the people.
Labels:

Comments

Post a Comment

Popular posts from this blog

Empowering Businesses: Virtual Corporate Law Services

  Empowering Businesses: Virtual Corporate Law Services In the dynamic world of business, legal support is crucial to ensure smooth operations, mitigate risks, and navigate regulatory landscapes. Lexis and Company offers Virtual Corporate Law Services to businesses in the UK, USA, Canada, Singapore, Dubai, and Australia , assisting with mergers, acquisitions, business contracts, compliance, and corporate governance. Key Features of Virtual Corporate Law Services 1. Mergers and Acquisitions (M&A) Legal Support We provide comprehensive legal services for mergers and acquisitions , including due diligence, structuring deals, drafting agreements, and navigating regulatory approvals. Benefits: Ensures smooth and legally sound M&A transactions. Minimizes risks during corporate restructuring. Protects your business interests in high-value deals. Trending Hashtags: #MergersAndAcquisitions #BusinessDeals #CorporateLaw #LegalSupport #VirtualLegalExperts 2. Business Contracts and Ag...
Post a Comment
Read more

Concept of constitutionalism

  Concept of constitutionalism Who Started Constitutionalism? John Locke - The English Bill of Rights is a foundational constitutional document that helped inspire the American Bill of Rights. Political theorist  John Locke  played a huge role in cementing the philosophy of constitutionalism.  Constitution is a written law which describes the structure of Government, the rules according to which the Govt. must work and the boundaries within which the Govt. must work. Constitutionalism   can be defined as the doctrine that governs the legitimacy of government action, and it implies something far more important than the idea of legality that requires official conduct to be in accordance with pre-fixed legal rules. Constitution constitution is the document that contains the basic and fundamental law of the nation, setting out the organization of the government and the principles of the society. Basic norm (or law) of the state; System of integration and organi...
Post a Comment
Read more

Nathulal v. State of Madhya Pradesh AIR 1966 SC 43

 Nathulal v. State of Madhya Pradesh AIR 1966 SC 43 CITATION AIR 1966 SC 43 COURT Supreme Court of India JUDGES/CORAM Justice K.S. Shah and Justice R. Bachawat DATE OF JUDGEMENT 22.03.1965 Facts: The facts of the case are as follows: The appellant was a dealer in a food grains at Dhar in Madhya Pradesh prosecuted in the Court of Additional District Magistrate for possessing in stock maunds and 21/4 seers of wheat for the purpose of sale without license. Subsequently appellant was charged for committing an offence under section 7 of the Essential Commodities Act, 1955. Thereafter the appellant pleaded there was no intention to contravene any provisions of the law and the grains were stored upon filing an application for license and upon believe that it will be issued to him. The appellant further stated that he continued to submit returns on the food grains stored and purchased to the respected authority. Thus, the appellant was acquitted in the Court of Additional District Magistra...
Post a Comment
Read more