The Insurance Development and Regulatory Authority (IDRA), the regulatory body overseeing the nation’s insurance sector, has issued a new directive clarifying that losses arising from ‘popular uprisings’ or mass protests cannot be considered under insurance coverage. The instruction was formally communicated to the State-owned Reinsurance Corporation (SRC) on 4 January 2026.
SRC, the country’s sole reinsurance institution, had previously decided on 3 March 2025, during a board meeting, that losses caused by popular uprisings fall outside standard insurance policy coverage. Representatives from private insurance companies and several survey organisations attended the meeting. However, the session did not establish detailed procedural guidelines or specific claim settlement protocols for such events.
Insurance sector experts explain that under international standards and typical fire insurance policies, losses directly caused by civil unrest are excluded. In legal terms, if the “proximate cause” of damage is a popular uprising, coverage does not apply. Standard Fire Insurance Policies and Industrial All Risks (IAR) policies similarly do not include civil unrest as a covered risk.
IDRA’s letter stipulates that all non-life insurance companies must no longer categorise losses as arising from a ‘popular uprising’ in claim settlements. Instead, companies are required to appoint licensed surveyors to assess damages, and subsequent action must be taken based strictly on the survey reports.
Experts warn that this directive could complicate the handling of claims related to the uprisings that occurred during July–August 2024. The requirement for survey-based verification may prolong claim settlement processes and could increase the risk of fraudulent claims.
A senior SRC official stated: “We have received IDRA’s communication. The matter will be discussed at the board level, and a formal decision will follow. Our prior policy stance was based purely on the interpretation of insurance law and policy conditions.”
Key Aspects of Insurance Coverage for Popular Uprisings
| Subject | Details |
|---|---|
| Relevant Period | July–August 2024, as per National Certificate 2025 |
| Cause of Loss | Popular uprising (mass protests) |
| Insurance Coverage | Excluded (Standard Fire, IAR, Special Condition 6B) |
| IDRA Directive | Do not recognise claims as uprising-related; licensed surveyor mandatory |
| Potential Impact | Increased claim complexity and higher risk of fraudulent claims |
As per Section 127(1) of the Insurance Act 2010, only licensed insurance surveyors may assess or coordinate non-life insurance losses. Any violation may result in financial penalties for individuals and companies.
Analysts note that while IDRA’s directive provides a legal basis for excluding popular uprisings from coverage, it may spark debate over transparency and fairness in the settlement of claims. Non-life insurers will now be compelled to substantiate every claim thoroughly, potentially reshaping claims management practices in the country.