HDFC Ergo has launched covering exclusions for a slightly higher premium after the Insurance Regulatory Development Authority of India (IRDA) allowed partial freedom. This is the first time a general insurer is offering cover for exclusions.
Exclusions refer to those developments that are not compensated by the insurance companies. These will be clearly mentioned in policy wordings of any insurance policy.
For example, until now in case of fire in a factory, insurers did not pay claims for the equipment that caused it, Instead it paid only for the damages caused to other equipments and premises due to the fire.
However with exclusions being included, the insurers will now offer cover for equipments causing fire for an extra premium.
HDFC Ergo is a joint venture between financing major HDFC and Germany’s Ergo Group. Ergo holds 26% stake in the joint venture and the remaining is held by HDFC.