Maharashtra, the second-most populous state in India, could become the first state in the country to have mandatory insurance coverage for shops and establishments, as this requirement would be written into the Maharashtra Shops & Establishment Rules.
The Maharashtra government’s Labour Department has issued a draft notification that stipulates that insurance coverage for fire and allied perils would be mandatory for every shop and establishment, reported ETNow, an English-language business and finance news channel in India. The insurance would cover damage or destruction caused by fire, lightning or explosion.
The draft rules propose to include a copy of the insurance policy of the establishment as a document which needs to be submitted while applying for or renewing the business registration.
The deadline for public feedback on the draft notification is 16 September 2023.
