Insurers must include nat cat cover: CMA

The Capital Market Authority has instructed all insurance companies to include the benefit of natural calamities coverage at the conclusion or renewal of insurance policies related to properties, homes and establishments as such coverage against natural calamities is essential for such types of policies.

The regulator has specified to all insurance companies to immediately modify their insurance policies to include the coverage for natural calamities in the policies or their renewal. The CMA emphasised including such coverage related to properties, homes and establishments.

The move comes as the CMA noticed that some insurance companies are removing the coverage against the perils of natural calamities from insurance policies of  properties, homes and establishments which deprived such policies of an essential  protection from the insured perils which is express violation of the insurance companies law and the regulation.

CMA urges all the insurance companies to seek its consent before making any modification in the insurance policies to avoid legal consequences.