Insurance of mortgaged property
Ashish
(Querist) 10 July 2012
This query is : Resolved
Hi,
My Name is Ashish. I want to ask you a question related to general insurance.
I am going to enter a venture with my uncle(not relative) and 2 other persons who are already a director of a Pvt ltd. company. When I enter I would become the 4th director.
They have already planned to set up a cast iron foundry to manufacture some product. For this they have applied for a loan amounting around 4 crores(total project cost including term loan and cash credit). But they are falling short of security money of around 40-50 lacs. Since I have ready property of my own I want to invest in the project since it is a profitable one.
Now my question is that -
1. Can my mortgaged property be insured? so that in case of bankruptcy the insurance company bears everything and I can get my property back from the bank without any issues.
Please also suggest other ways of keeping myself in safe place..
ashutosh mishra
(Expert) 10 July 2012
Dear Mr.Ashish!
To my knowledge no insurance company insures
Losses of any business.
It would be party time for business men if they have such an opportunity.
Any one may correct me if I am wrong.
