Building had no insurance cover

Even as all prime buildings of institutions such as Reserve Bank of India,Securities and Exchange Board of India and public sector companies have got their establishments insured,the government does not seek an insurance cover in a bid to save on high premium payment for their buildings that run into large numbers. The Mantralaya building,where a fire broke out on Thursday,was also left uninsured. A senior government official who did not wish to be identified said the Mantralaya building had not been insured. And,that is not a case in isolation. senior officials with insurance companies confirmed that as a trend or rule no government building in the country is insured. “The logic is that the government has numerous buildings and if it insures them,the premium cost would run into huge numbers,” said the head of a general insurance company.

There are,however,some state governments that have created an alternative mechanism to cover their buildings. “The state governments of Gujarat and Rajasthan run their own insurance fund,” said a senior official with another insurance company.