By Alice Uribe
SYDNEY-- Insurance Australia Group Ltd. will allow small businesses to defer premiums for six months if they are experiencing financial hardship, as part of a raft of measures designed to cushion the impact of the coronavirus pandemic.
Australia's largest general insurer said it would also provide refunds to small businesses who end their insurance, with no administration and cancellation fees. For those small businesses which must close their premises due to the pandemic, IAG said they can maintain full insurance cover on the premises with no changes to premiums. Vacant premises are higher risk and typically attract higher premiums.
"We are working hard to implement these measures as soon as possible and we recognize that this is one more disaster our communities have to face in what has been a catastrophic start to 2020," said Peter Harmer, IAG's chief executive officer.
IAG said the small business relief applies to small businesses with an annual turnover of less than 50 million Australian dollars (US$30.28 million).
Customers who have taken out travel insurance can get refunds for any unused proportion of premiums, including full refunds where customers have not yet travelled and have not claimed under their policy, with no administration or cancellation fees.
IAG expects these measures to be in place by March 30. The key measures, which apply to direct and brokered insurance offered through IAG's NRMA Insurance, CGU, WFI, SGIO and SGIC brands.
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