India’s largest car manufacturer Maruti Suzuki is expected to bear a loss of about Rs 400 crore due to worker’s strike and violence at its Manesar facility which killed a company executive and injured several others. The company’s insurance claim is restricted to Rs 5 crore in case of damage to the plant. The insurance policy however doesn’t cover the loss due to non-production at the facility and covers only damages to plant and machinery.
The company has insurance covers with four insurance companies, namely Iffco Tokio General Insurance, National India, Bajaj Allianz and United India, totaling to about Rs 16,213 crore worth of insurance.
According to Mr. Parag Gupta Head of Claims Iffco Tokio General Insurance, Maruti Suzuki’s insurance policy will only cover the loss to property but not loss due to interruption in business activity. Iffco Tokio General Insurance is the company’s largest insurer with 60 percent of the total share of insurance.