The insurance is intended to cover damages sustained by shop owners as a result of floods, earthquakes, lightning, storms, cyclones, fire, and other climatic hazards, as well as any loss due to shop theft.
In an effort to assist small company owners, neobank Chqbook and ICICI Lombard have introduced “shop insurance cover” for its digital current account users.
Small business owners, including kiranas, pharmacies, and others, may easily create a digital current account on the Chqbook app in their preferred language. The current account is offered in eight different languages. In the next twelve months, Chqbook intends to enroll more than 500,000 store owners and merchants.
What is available?
According to Mint, this insurance will cover damages caused by store owners owing to floods, earthquakes, lightning, storms, cyclones, fire, and other climatic hazards, as well as losses incurred due to shop break-ins.
According to the G20 climate risk atlas, India stands to lose 5.21 percent of its GDP by 2050 as a result of the disastrous effects of climate change. Small enterprises contribute for 30 percent of India’s gross domestic product, yet they frequently have difficulty gaining access to financial services, including insurance. Lack of access and poor knowledge make them susceptible to climate hazards and other man-made dangers, requiring them to either take out loans or utilize their savings to offset the losses, which might drive them into poverty.
Despite the possible hazards, barely one in five small company owners have insured their businesses and their belongings, according to a recent poll by neobank. Almost fifty percent of business owners believe they are not at risk. This has resulted in financial difficulties for many, with 80% compelled to utilize their savings, sell their belongings, or obtain loans to recover losses.
“Our collaboration with ICICI Lombard General Insurance seeks to combat this issue and make our community more resilient and financially secure. By bundling shop insurance solutions with our Digital Current Account, we enable small business owners to access financial services on their smartphones with no paperwork, giving them the protection they need to run and grow their businesses “The co-founder of Chqbook, Mohit Goel, told the publication.
Goel stated that Chqbook will cover the first year’s cost for this Shop Insurance in light of the community’s need to be protected against unanticipated losses resulting from adverse weather.
Sandeep Goradia, CEO – corporate solutions at ICICI Lombard, stated that the bundling of such a solution will boost the preparation and responsiveness of small/micro business owners in the face of operational uncertainty. This would increase insurance penetration and microinsurance product uptake in India, he noted.