Fire Insurance

The major Property Insurance cover in India is Fire Insurance. Although called Fire Insurance, it is an umbrella insurance policy covering many risks. The risks covered under Fire Insurance, technically named as Standard Fire and Special Perils Policy, are:

Fire Group Perils

Fire, Lightening, Explosion & Implosion, Forest Fire, Bush Fire

Act of God Perils

Storm, Tempest, Flood, Inundation, Earthquake, Landslide, Rockslide

Social Group Perils

Riot, Strike, Malicious Damage and Terrorism

Miscellaneous Perils

Impact Damage, Aircraft Damage, Bursting and/or overflowing of Water Tanks, Apparatus and Pipes, Missile Testing operations, Leakage from Automatic Sprinkler Installations

The exclusions in the policy are:

This Policy does not cover

The first 5% of each and every claim subject to a minimum of Rs.10,000 in respect of each and every loss arising out of “Act of God perils” such as Lightening, STFI, Subsidence, Landslide and Rock slide covered under the policy

The first Rs.10,000 for each and every loss arising out of other perils in respect of which the Insured is indemnified by this policy. The Excess shall apply per event per insured.

Loss, destruction or damage caused by war, invasion, act of foreign enemy hostilities or war like operations (whether war be declared or not), civil war, mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, rebellion, revolution, insurrection or military or usurped power.

Loss, destruction or damage directly or indirectly caused to the property insured by

• ionizing radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel
• the radioactive toxic, explosives or other hazardous properties of any explosive nuclear assembly or nuclear component thereof

Loss, destruction or damage caused to the insured property by pollution or contamination excluding

• pollution or contamination which itself results from a peril hereby insured against.
• any peril hereby insured against which itself results from pollution or contamination

Loss, destruction or damage to bullion or unset precious stones, any curios or works of art for an amount exceeding Rs. 10000/-, manuscripts, plans, drawings, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of accounts or other business books, computer systems records, explosives unless otherwise expressly stated in the policy.

Loss, destruction or damage to the stocks in Cold Storage premises caused by change of temperature.

Loss, destruction or damage to any electrical machine, apparatus, fixture, or fitting arising from or occasioned by over-running, excessive pressure, short circuiting, arcing, self heating or leakage of electricity from whatever cause (lightning included) provided that this exclusion shall apply only to the particular electrical machine, apparatus, fixture or fitting so affected and not to other machines, apparatus, fixtures or fittings which may be destroyed or damaged by fire so set up.

Expenses necessarily incurred on (i) Architects, Surveyors and Consulting Engineer’s Fees and (ii) Debris Removal by the Insured following a loss, destruction or damage to the Property insured by an insured peril in excess of 3% and 1% of the claim amount respectively.

Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind or description whatsoever.

Loss or damage by spoilage resulting from the retardation or interruption or cessation of any process or operation caused by operation of any of the perils covered.

Loss by theft during or after the occurrence of any insured peril except as provided under Riot, Strike, Malicious and Terrorism Damage cover.

Any Loss or damage occasioned by or through or in consequence directly or indirectly due to earthquake, Volcanic eruption or other convulsions of nature.

Loss or damage to property insured if removed to any building or place other than in which it is herein stated to be insured, except machinery and equipment temporarily removed for repairs, cleaning, renovation or other similar purposes for a period not exceeding 60 days.

Burglary Insurance

Coverage

Burglary Insurance policy covers property contained in business premises like furniture, fixtures, fittings, office equipment, electronic equipment, stocks owned, or for which insured is responsible or held in trust and/or commission. It can also cover cash, valuables, securities kept in a locked safe or cash box in locked steel cupboard if specifically mentioned.

The policy covers loss or damage caused by Burglary and Theft following upon an actual forcible and violent entry of and / or exit from the premises and Robbery. It also covers damage to your premises caused by burglars during burglary or attempts at burglary.

The Policy pays actual loss/damage to your insured property caused by burglary subject to the limit of Sum Insured. If Sum Insured is not adequate, Policy pays only proportionate loss.

There is also a provision in the Policy to cover bulk items on ‘first loss’ basis wherein a percentage of total stock stored can be taken as that exposed to the risk of burglary and housebreaking. The premium is charged on this percentage selected only. Policies can be issued on declaration basis and on floater basis for stocks

Extensions3

• Loss of the insured property to cover burglary as a result of riot & strike risks
• Theft and larceny not accompanied by violent ingress or exit
• Costs for changing locks and cost for repair of damage caused to the insured premises after an insured event up to 10 % of the total sum insured.
• Expenses towards restoring paper files, plans, records and drawings, data and installation costs for computer programs
• Expenses towards clearance of debris, movement and protection thereof (normally up to 10 % of the loss subject to a maximum of Rs 10,000/-)
• Loss or damage to the properties of the employees
• Death or injury to employees during a burglary or attempted burglary

The Policy does not cover loss or damage arising from

• War and warlike operation, Riot & strike, civil commotion, Terrorist activities conclusion of nature and / or Consequential loss by use of the keys to the safe unless obtained by force or threat
• Any inmate or member of the Insured’s household or his business staff or any other person lawfully in the premises
• Ionizing radiation or contamination by radioactivity
• Nuclear weapons material
• goods held in trust/commission, jewelry, curios, title deeds, business books unless specifically insured.
• By abstraction from a safe using a key or duplicate key, unless it is obtained by violence or threat
• Due to shop lifting, acts involving you/your family members/ your employees
• The extension does not cover losses detected during routine stock taking/ checking.