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.

• Stock such as Raw materials, Stock in process, Semi finished goods and Finished Goods packing materials , stock held in trust etc.

Add ons

To cover the gaps in the coverage, various add ons are available and just to name a few:

• Removal of debris excess of what is covered in IAR

• Temporary removal of stock

• Escalation

• Omission to insure

• Start up /Shutdown expenses

• Terrorism cover

• Claim preparation cost

• Involuntary betterment

• Expediting expenses

• Immediate repair

• Capital additions

• Decontamination

• Undamaged foundation

• Suppliers’ and/or customers extension under BI

• Failure of Public utility under BI

• Additional increase cost of working. and many more…

Exclusions

This being an all-risk insurance, exclusions clearly define what is not payable under the policy. Some of the common exclusions are:

• Inherent vice, Normal wear and tear

• Fraud or larceny

• Willful negligence and loss of market

• Damage or destruction by order of public authority

• Damage due to pollution and contamination

• Collapse or cracking of building

• Faulty or defective design, material or workmanship

• Pollution, contamination

• Inventory losses

• Interruption of the water supply, gas, electricity or fuel systems or failure of the effluent disposal systems, etc.

Sum Insured

Policies are available on reinstatement value basis other than for stock, which is covered as per market value…

• 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).

• Own Stocks/ Goods held in trust – to be declared on Market value/ cost price basis.

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

Premium

Premium rates are currently based on the nature of occupancy.

Claim Procedures:

• 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 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 IAR 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.