The Insurance Development and Regulatory Authority (IDRA) has recently issued a pivotal directive clarifying that losses arising from “public strikes” or mass sit-ins will not be covered under insurance policies. The instruction was officially communicated to the State Reinsurance Corporation (SRC) on 4 January 2026.
SRC, the nation’s sole reinsurance institution, had earlier deliberated on the matter during its board meeting on 3 March 2025. The board resolved that damages caused by public strikes should not fall within the scope of general insurance policies. The meeting included participation from several private insurance companies and survey agencies, though no detailed protocols for claim settlement or procedural guidelines were finalised at that time.
Insurance experts note that, in line with international standards and typical fire and industrial risk insurance policies, civil disturbances or losses from mass strikes are generally excluded from coverage. Legally, if the “primary cause” of the damage is a public strike, the insurance claim cannot be accepted. Standard Fire Insurance and Industrial All Risks (IAR) policies explicitly exclude civil unrest from coverage.
The IDRA directive mandates that all non-life insurers must cease classifying claims under “public strike” losses. Instead, insurance companies are required to ensure accurate assessment of damages through licensed surveyors, following which appropriate actions should be taken based on their reports.
Analysts warn that the directive may complicate the settlement of claims arising from the July–August 2024 strikes. The reliance on surveyor-verified assessments could prolong claim resolutions and increase the risk of fraudulent claims.
A senior SRC official commented, “We have received the IDRA directive. The matter will be reviewed at the board level, and a formal decision will follow. Our previous policy was based solely on the interpretation of insurance laws and regulations.”
Key Information on Public Strike Insurance Coverage
| Subject | Details |
|---|---|
| Relevant Period | July–August 2024 (per National Certificate 2025) |
| Cause of Loss | Public strike / mass sit-in |
| Insurance Coverage | Excluded (Standard Fire, IAR, Special Condition 6B) |
| IDRA Directive | Claims will not be recognised as strike-related; licensed surveyor report mandatory |
| Potential Impact | Increased complexity in claims; higher risk of fraudulent claims |
Under Section 127(1) of the Insurance Act 2010, only licensed insurance surveyors are authorised to assess or reconcile non-life insurance losses. Violation of this regulation can result in financial penalties for both individuals and institutions.
While analysts acknowledge that the IDRA directive provides a solid legal basis, it is expected to spark debates regarding claim transparency and fairness. Non-life insurers must now supply thorough evidence for each claim, which could bring long-term structural changes to the country’s insurance claim management system.