There are uncountable teens and kids who do share a huge crush for Maggie, the most adorable brand catering delicious noodles to the Indian food market. However the recent controversy concerning the quality and standard of Maggie products has called the reputation of this brand into question. At the same time the controversy has been able to uphold the importance of recall product insurance in the eyes of food manufacturing companies.
The level of anxiety in the food industry is kind of unprecedented right now. Considering the business costs triggering from faulty products a huge number of business organizations seems acutely interested in the recall product insurance. In case you too are having some butterfly syndromes in your stomach considering the fluctuating state of the market then here are some essential details which would come handy to you while you try to seek ample assistance in the form of this mighty insurance package.
Definition of recall product insurance
In technical terms, recall product insurance is a specific kind of an insurance cover which is going to cover up the expenses which are related with the act of recalling a particular product from the market impeccably. Manufacturers who are specifically catering to the food industry are really going to take ample advantage out of this particular cover.
How the manufacturer is going to profit from this cover?
In spite of the hit triggered by your products (which are at fault) you might be able to save yourself from the brunt of the situation provided your products come under the protection of recall product insurance pack. If you consider the case of Nestle you would be well aware of the role played by such insurance coverage options.
Nestle, one of the biggest brands in the food industry in India, has already been under the fire. The ministry of consumer affairs might file a case against this branded name in the food industry for roping in unsafe products in the market. Nestle does face a horrible situation presently but even in the midst of this gruesome situation Nestle would be able to curtail the ravages to a significant level. Now the question is how on earth that is possible.
Nestle, the name behind Maggie noodles, has already grabbed a CGL policy (consumer general liability policy) from none other than ICICI Lombard. Here the CGL coverage would act like recall product insurance for Nestle. Based on this particular insurance cover Nestle is supposed to get a whopping 150 crores compensation from ICICI Lombard. Such a huge insurance coverage is surely going to save the face of Nestle in the food industry and is going to elicit the company from the damage occurred by the controversy in the market. Other entities in the food industry are now interested in following suit by getting them covered with an equitable and worthwhile recall product insurance package.
If you too happen to be a part of this industry then it is high time that you should be well aware of the facilities that you can simply grab from recall product insurance.