According to insurance sector officials, the penetration is less than one per cent.
The main reasons are the lack of proper ownership documents and the general tendency of the shop owners to avoid insurance, officials said, preferring to put the entire blame on the city's trading community.
"The main handicap is the lack of proper records. The shop owner are required to maintain proper records of the goods so that they are in the position to access the losses, otherwise it becomes difficult," said V Ramasaamy, Chairman and Managing Director, National Insurance Co Ltd.
Again the premium rates depended on the condition of commercial buildings and markets, like the quality of electrical wiring and safety measures and water facility among other things.
In case of most of the old markets in the city, rates were bound to be higher due to the old page and the poor condition of the buildings.
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"We have a comprehensive policy for the shop keepers but there are few takers largely due to the lack of awareness," he alleged. Similarly unless a project was financed, in which case insurance was compulsory, the insurance companies also largely avoided these shops.
On the part of traders, a spokesman of the Federation of West Bnegal Traders Association alleged insurance companies never bothered to sell them policies because it meant hard work and working out tailormade policies.
"They are officers and babus and never bother to come and visit", he alleged on condition of anonymity.
"There are lot of complexities associated with the insurance in these markets. For example, most of the shopkeepers often keep unauthorised inflammable goods like spirit and kerosene with them for which they do not reveal while doing the insurance due to higher costs. Hence we try to avoid these segments," an official of a general insurance company admitted.
Speaking on the same lines, G Srinivasan, chairman and managing director of the United India Assurance Co Ltd., admitted that in spite of having a range of insurance products for the shop keepers, the penetration was very low.
"Unless it is made mandatory as in case of bank financed establishments, the general tendency is to avoid insurance. We are interacting with various trade associates and chamber of commerce to build an awareness campaign," he said.
In the last five months the city has witnessed 15 major fires with the latest one gutting the Mehta Building, a large wholesale and retail market and stockyard of medicine. This is third major fire in the Burrabazar area since January after the 100-hour fire in the Nandaram Market and Jagannath Ghat flower market, close to the Mehta building.
Incidentally, none of the stalls of the Jagannath Ghat flower market were insured as they were non-permanent wooden structures. In the case of the Nandalal market, claims settled were much less thsan expectations.
The total damage was estimated at several hundred crores.
"Keeping in view of the extent of the damages in the Nandalal market we were expecting huge contractual losses, but the ultimate claims settled were negligible. Out of 16-20 reported claims only 6-7 were payable, which would amount to around Rs 10 lakh," a senior executive of United India Assurance said.
According to an official of National Insurance Company, the total number of claims received was around 10 and the total settled amount was much lower than expected. Without divulging the actual figures he added,
"The claims were small, ranging between Rs 50,000 and Rs 10 lakh.