Bharat Laghu Udyam Sureksha

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Bharat Laghu Udyam Sureksha

This policy provides insurance cover to your property relating to your business. This cover is applicable to enterprises where total value at risk among all insurable assets classes at one location exceeds ₹ 5 crores but does not exceeds ₹ 50 crores. This policy is basically meant for hotels, offices, shops, industrial/ manufacturing risk, utilities outside industrial risk, storage risk and tank farms/ gas holders outside the industrial risk.

Items covered

  • Building of all types including plinth & foundation covered in the policy depending on the occupancy (Nature of work done on premises or the place being used for what purpose).

  • Plant & Machinery includes all types of machineries depending on the nature of work of the place.

  • Furniture, Fixtures & Fittings.

  • Stocks such as Raw materials, Stock in process, Semi finished goods and Finished Goods packing materials, stock held in trust etc.
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Unexpected events Covered to Coverages

Bharat Laghu udyam insurance policy covers the losses / damage to the property happening due to the following named perils:

  • Fire including due to its own fermentation or natural heating or spontaneous combustion.

  • Lightning

  • Explosion / Implosion

  • Earthquake, volcanic eruption or other convulsions of nature.

  • Storm, cyclone, typhoon, tempest, hurricane, Tornado, Tsunami, flood&, inundation.

  • Subsidence / Landslide including rockslide

  • Bush fire, forest fire, jungle fire

  • Impact damage of any kind by any external physical object (e.g. Vehicle, falling trees, aircraft, walls etc) but excluding
    (a) pressure waves caused by aircrafts, other areal and space vehicles.
    (b) animals, vehicles, aircraft owned/belonging to insured or their employee while acting in course of employment.

  • Missile testing operations.

  • Riot, Strike, Malicious damage (called RSMD Perils)

  • Act of terrorism.

  • Bursting and / or overflowing of water tanks, apparatus, pipes

  • Leakage from Automatic Sprinkler Installation

  • Theft within 7 days from the occurrence of any of the above perils.

In built add-ons.

Bharat Laghu udyam insurance policy covers the losses / damage to the property happening due to the following named perils:

  • Additions, alterations, or extensions upto 15% of sum insured excluding stock

  • Stocks on floater basis

  • Temporary removal of stock

  • Startup expenses upto ₹ 1 lac

  • Professional fees Architects, surveyors and consulting engineers’ fees upto 5% of the claim amount

  • Cost of removal of debris: Upto 2% of the claim amount

  • Cost compelled by Municipal regulation: Additional cost of reconstruction for complying with municipal regulations.

  • Specific contents cover for money at ₹ 50,000 during policy period. Cover for deeds, manuscript, business books, drawings, plans, securities for ₹ 50000 during policy period. Cover for computer program, information and data for ₹ 5 lacs during policy period and cover for personal effects of employees, doctors and visitors upto ₹ 15000 per person up to maximum 20 person during policy period.

  • Declaration facility of sock as an additional cover subject to insurance company’s acceptance.

Exclusions

Since it is a named peril policy, the damages/ losses arising out of covered perils are included and any causes other than the named perils fall under exclusion. Some of the exclusions are

  • Excess of 5% of the claim amount subject to minimum of ₹ 10000 in each and every claim. Terrorism claims are subject to different excess limit.

  • Deliberate, willful, intentional act of omission.

  • Loss, damage or destruction to any electrical/electronic machine, apparatus, fixture, or fitting by over-running, excessive pressure, short circuiting, arcing, self-heating or leakage of electricity from whatever cause (lightning included).But ensuing loss is covered

  • Loss, destruction or damage to the stocks in cold storage premises caused by change of temperature.

  • 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 Insured Events.

  • Your Premises or any Insured Building remaining continuously unoccupied for a period of more than 30 days, unless You have obtained prior written approval from insurance co. and such approval is recorded as an endorsement on the Policy.

  • War, invasion, act of foreign enemy hostilities or war-like operations (whether war is declared or not), civil war, mutiny, civil commotion amounting to a popular rising, military rising, rebellion, revolution, insurrection or military or usurped power.

  • Ionizing, radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste from combustion of nuclear fuel, or the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component that is part of it.

  • Pollution or contamination, unless
    i. the pollution or contamination itself has resulted from an Insured Event, in which case only physical damage to the Insured Property is covered, or ii. an Insured Event itself results from pollution or contamination. L

  • Loss, destruction or damage to bullion or unset precious stones, any curios or works of art unless such amount is declared separately and recorded in the Policy Schedule.

  • Loss of any Insured Property which is missing or has been mislaid or its disappearance cannot be linked to any single identifiable Insured Event.

  • Loss or damage to any Insured Property removed from Your Premises to any other place, except Machinery and equipment temporarily removed for repairs, cleaning, renovation or other similar purposes for a period not exceeding 60 days and Stock covered under -‘Temporary removal of stocks’

  • Any reduction in market value of any Insured Property after its repair or reinstatement.

  • Loss or damage to any Insured Property or any claim which is covered by a marine policy in force at the time of loss or damage, except in excess of the limits of that policy.

  • Any consequential or indirect loss or damage of any description, i.e. losses or extra costs (financial or non-financial) that follow or are a consequence of an Insured Event, like, loss by delay, loss of income or wages or earnings, or of market, or of time, medical expenses, or any costs not covered by this Policy.

  • Costs, fees or expenses for preparing any claims.

Sum Insured:

Policies are available on reinstatement value basis as per details below.

  • Building, Plant & machineries, Furniture, Fixtures and Fittings– Reinstatement value basis (this means the estimated cost of replacing or reconstruction of the similar property as on the date of proposal).

  • Stocks– to be declared on Market value basis (this means the cost of stock as on current date)

    • Raw material – Landed Cost of materials.

    • Stocks in process – Input cost of the stock at the time of damage.

    • Finished Goods – Manufacturing cost of the finished goods and contract price of the goods sold but not delivered.

  • Bullion, unset precious stones, any curios or works of art or any obsolete machinery and like on agreed value basis.

Claim Procedures:

Policies are available on reinstatement value basis as per details below.

  • You must make a claim for Your financial loss at Your cost.

  • When You suffer loss or damage to any Insured Property, You must give notice to insurance co. immediately along with details of the event and Your loss,

  • Report to police, fire authorities or other appropriate legal Authorities or as guided by insurance co .

  • Take all reasonable steps to prevent further damage to Insured Property,

  • You must not sell, give away or dispose of any damaged items of any property,

  • You must not carry out repairs unless such repairs are urgent.

  • preserve and collect evidence, take and preserve photographs,

  • Assist Insurance company and/or surveyor in collecting evidence and details about Your loss, give Us all information, books of accounts, and other documents,

  • Submit claim form at the earliest opportunity but within 30 days from date You first notice the loss or damage

  • Prove that the Insured Event has happened, and prove the extent of Your loss.

  • Insurance company appoints independent surveyors who will assess the loss.

  • On submission of documents required, assessment will be done by the surveyor. The claim can be settled on market value basis or reinstatement value basis subject to confirmation of reinstatement. As per policy terms reinstatement should be completed within 12 months from the date of loss or else, extension of reinstatement must be requested and permission to be obtained from the insurer.

  • Under insurance. Underinsurance occurs if the Replacement or Reinstatement value on the date of loss of Insured property is more than the Sum Insured and in case of stock if Insured Stocks are collectively of greater value than their Sum Insured. In such a case, the full claim is not paid but reduced in proportion to the difference. Under the Laghu Udyam Suraksha Policy, underinsurance upto 15% is ignored, but beyond that underinsurance is applicable to the full extent.

  • Mode of settlement. If reinstated, the reinstatement value or repair cost of damaged item subject to proof of reinstatement. If not reinstated, then the claim will be settled on market value basis (reinstatement value- depreciation). Stock claims are settled as per valuation as defined in the policy.