KL News Network
Federation of Chambers of Industries (FCIK) has demanded introduction of “Business Interruption Insurance policies” by the insurance companies operating in the state of Jammu and Kashmir which should cover the business losses incurred by enterprises during the closure of business due to curfew, public unrest, disaster, plant break down or any other eventuality.
In a statement on Sunday, FCIK has urged the state government and SLBC to push forward this much needed insurance product in the interest of safeguarding the investment of existing entrepreneurs and building confidence among prospective entrepreneurs.
The demand for interruption insurance came up for discussion during a meeting of the administrative council with senior members of FCIK to assess the losses incurred by the industrial enterprises during past 5 months of unrest and the role of FCIK to ease out the financial and mental stress of the fraternity members.
In the meeting held under the chairmanship of President FCIK Er. Mukhtar Yousuf, the members observed that the unit holders have accumulated huge liabilities towards the interest on their bank loans, electricity fee, idle wages and salaries, contribution towards provident fund, ESI etc and other statutory liabilities They said that restructuring of loans aimed at deferment of interest to a later date cannot serve their purpose as major part of their working capital facilities has gone towards feeding their employees and other necessary expenditures during the turmoil. “As such it was imperative on the banks and government to share the interest and not burden the enterprises on this account,” read the statement.
The meeting deliberated that in the era of innovative and need based financial and insurance products thrown open by the banks and insurance companies across the globe, “why can’t they devise an insurance product of which is badly needed by trade and industry in Kashmir.”
The members pointed out that the interruption insurance policies are available in most of the countries which take care of establishment expenditures and profits during the course of closure of business due to disaster or any other reason.
The senior members of the organisation informed the meeting that the business in Kashmir has got interrupted for over 2000 days during past 26 years owing to imposition of curfew by the government or public strikes. “The state or central government has not compensated a penny towards the huge business losses incurred during closure of their enterprises. It has resulted in loss of faith and confidence of young and educated generation to opt entrepreneurship as their career,” said spokesman.
Speaking on the occasion, President FCIK Mukhtar Yousuf said that “it was unfortunate that the business community is made to beg before the government and banks for grant of relief and rehabilitation whenever there occurs a problem for no fault of theirs.”
“It is a big blow to the respectability of job providing entrepreneurs who are otherwise treated as the highest class citizens in the civilized countries,” he added.