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Factory collapse in Ludhiana turns into a boon for insurance company

By Ranjit Singh

November 30, 2017

Sukhpreet Singh

Ludhiana While the fire incident at a local factory may have created havoc and killing 13 people, but it has resulted in boon for the insurance sector as large number of factory owners who had so far not insured their factories are turning up at the insurance companies in large numbers. According to the officials and owner of the factory that was engulged with major fire blaze and collapsed, factory was not insured due to which owner had suffered a loss that worth in crores.Ranjit Singh, adminstrative officer at Oriental Insurance at Miller Ganj Ludhiana articulated that, “More than 20 percent increase has been witnessed in insurance sector in past 10 days. After the factory incident, insurance offices are flooded withthe applicants as this incident made the owner suffered with the loss in crores”. Another official of insurance department of State Bank Of India on requesting anonimity averred that, “There is huge increase in number of applicants for insurance from past 10 days. I am occupied with work from past several days as peopel are in eager to get their property insured”.

According to the officials of Public Sector Undertaking, almost 50 percent of the factories are not insured. Instant boon in insurenace sector has been witnessed in past 10 days. Insurance officials are on their toes as plethora number of applicants have submitted their files for insurance. Importantly, big players of factories and shops had already insured their premises now medium entrepises are mainly in fear and getting their shops and factories insured.

Mainly, small medium entreprises have a strong inlcination towards a insurance sector as factories are turning their accounts in proper manner so that they can prevail the insurance. According ot the one o fteh agents in insurance sector, mostly small medium entreprises not show their whole bussiness on accounts due to which insurance is not being done. 

Paramjot Singh, one of the agent working in insurance sector said, “In past 10 days, umpteen number of applicants are calling for the insurance as they are in fear of the same incident. According to me, 30 percent increase has been seen in insurance sector. Majorly, the shops, factories and other commericial properties located in old city areas are conatacting for the insurance. Howbeit, old city area is totally unplanned and people are under the fear after the major factory collapsed incident”.