Gov’t widens scope of SME insurance policy
Small and medium-sized enterprises’ (SME) insurance coverage has been expanded to cover losses during black rainstorm warning signals, a joint-statement issued by government bureaus states.
In view of the extreme rainstorm events in the past few years which caused flooding in many districts in Macau, local authorities have coordinated the insurance industry to optimize the catastrophe insurance plan this year, especially adding the black rainstorm warning signal as a claimable accident.
When the Meteorological and Geophysics Bureau issues a tropical cyclone signal No. 8 or above, or a red storm surge and above, or a black rainstorm warning signal, the insurance will provide SMEs with property damage protection.
Launched in 2019, the SME Catastrophe Property Insurance, and the SME Catastrophe Property Insurance Subsidy Program, aim to assist SMEs, especially in low-lying areas.
Back in 2017, the deadly Typhoon Hato’s high-tide caused severe flooding in low-lying areas, affecting several SMEs, including firms that have been established for several decades.
This was followed by another typhoon, Mangkhut, which also caused severe flooding in the Inner Harbour.
In the past, during severe typhoons and storm surges, commercial property losses were not covered by insurance.
From 2019 to 2021, a total of 55 policies have been issued and approved for subsidy, covering industries including catering, retail, seafood wholesale and electrical appliance wholesale and retail, according to a statement issued by the Macau Economic and Technologic Development Bureau (DSEDT) and the Monetary Authority of Macao (AMCM).
SMEs can purchase insurance through five participating local insurance companies.
The annual premium is set at 25% of the amount covered by the insurance, which offers coverage of up to 100,000, 200,000 and 300,000 patacas.
“Renewing merchants who have not made any claims can continue to enjoy the premium discount, with a 20% discount for the first year of renewal, 25% for the second year, 30% for the third year, and 35% for the fourth year or above. It is hoped that merchants will be encouraged to continue to take out insurance to manage their own risks,” the statement read.
Local establishments and commercial stores can buy the insurance from today until December 31.
