STANDARD FIRE & SPECIAL PERILS POLICY
Fire insurance is a conventional protection provided for many years presenting as a multi-peril product to day. This policy is designed by Tariff advisory Committee of India under the direct control of IRDA. It protects individuals, organizations, and financiers against loss or damage caused to the property by Accidental Fire and allied perils including Act of God perils, Explosion etc. It provides extension of other losses on the need of the buyer by additional cost.
Fire insurance is available at an affordable pricing with flexible riders including claims experience discount for a large industry. It extends its discount pattern for installation of Fire Extinguishers and hydrant system as an incentive to Risk Management techniques.
Who can insure?
Individuals, Commercial organizations, Industries, Financial Institutions and those who acquired pecuniary interest on the property arising out of law or contract.
What is covered?
Building, Machinery and accessories, Stock and Stock in process and Furniture and other contents are insured against loss or damage arising out fire and allied perils
BURGLARY AND HOUSEBREAKING INSURANCE (BUSINESS PREMISES)
Burglary The insurance is intended to cover contents of a business premises against loss or damage by burglary and/or housebreaking.
(a)Loss or damage to the property insured by theft following upon actual, forcible and violent entry into the premises.
(b)Damage to the premises following upon entry as above or any attempt thereat The indemnity provided is to the extent of the intrinsic value of the property so lost or damaged, subject to the limit of the sum insured
Who can insure?
Commercial organizations, Storage houses, Industries.
What is covered?
Stocks belonging to the buyer and held in trust or commission, Furniture, Fixture and fittings, Cash, currency and valuables kept in locked standard safes caused by theft by forcible entry or exit
MARINE CARGO INSURANCE
A Marine insurance Policy provides covers against the financial losses due to loss or damage to goods in transit. This Policy is traders safeguard against the physical risks involved in overseas or domestic transits.
Salient Features:
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The striking feature of Marine Insurance policies is that they are issued on 'agreed value basis'.
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The values agreed may include all expenses incurred or to be incurred and some amount of profit margins as well. As such the valuation of the consignment is important and it should be based on supporting evidence.
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The contracts can be supply of goods on:
(a)Ex-factory / godown / warehouse basis
(b)F.O.B. basis (free on board- values arrived at, may include sale price, packing and incidentals, insurance and freight for local transit until goods are placed On the ocean going vessel)
(c)F.O.R. (values until placed on Railway wagon as in the case of FOB)
(d)C & F (cost and freight values as in CIF, except the Insurance costs)
(e)C.I.F. (cost insurance & freight would be sale price and incidental charges, Insurance charges from warehouse to warehouse basis or any other point of delivery and all freight charges)
Who can insure?
Any person /Business owning the goods , can buy the transit risks for voyage of goods via sea/ rail/road/air.
This Policy can be bought by consignor &/or consignee.
This cover is for all domestic transits and for international journeys to / from any part of the world.
Issue of Policy to Transport Operators / contractors, clearing, forwarding and commission agents or Freight forwarders either in their own name or jointly with the owner of goods is prohibited, except on goods owned by them.
Types of Policies:
Based on the needs of trade and industry, the following types of policies are issued:
(a)Voyage policy
(b)Annual policy
(c)Declaration policy
(d)Special declaration policy
(e)Open cover
(f)Duty (custom duty) policy
(g)Increased value (profit) policy
(h)Marine Loss Of Profit
(i)Marine Cum Erection
MACHINERY INSURANCE
Machinery Breakdown policy covers financial loss incurred by the insured due to loss or damage to machinery as a result of accidental electrical and mechanical breakdown. It reimburses the insured for the cost of repairs or replacement of machinery of like nature.
Financial risk due to unforeseen and sudden damage to expensive plant and machinery can be offset by taking a machinery (breakdown) insurance policy. It permits the plant owners to dispense with setting up loss reserves and deploy these reserves in a profitable way.
Thus the policy is recommended for all business enterprises where a machinery failure may have serious financial & economic consequences.
This policy is designed by Tariff advisory Committee of India under the direct control of IRDA. It has an exclusive protection uncovered in fire and burglary insurance.
What is covered?
All types of industrial machinery like compressors, pumps, turbine etc. as also electrical machines like transformer, electrical motor, generator etc. can be covered under this policy.
ELECTRONIC EQUIPMENT INSURANCE
Any equipment operated with electrical power may suffer breakdown spontaneously. Electronic Equipment Insurance is the order of the day with the advancement of technology. The technology installations with all the peripherals involving high valued equipment in a small area exposed to location and functional risks. This policy covers "All Risks" to cover Computers, Bio medical equipment, X-ray equipment, audio/video equipment etc.
This policy is designed by Tariff advisory Committee in India under the direct control of IRDA.
Who can insure?
Individuals, Commercial, Industries, IT organizations etc
What can be insured?
Entire Computer system including CPU, Keyboards, monitors, printer, UPS, peripheral equipment and auxiliary equipments.
It is recommended for
i.Computers
ii.Industrial Electronic equipments
iii.Medical electronic equipments
What does it protect?
Material damage to the Equipments, External Data Media (optional), Increased cost of working (optional)
BOILER EXPLOSION & PRESSURE VESSELS POLICY
The policy is designed to cover loss or damage to boilers, fired and unfired pressure vessels against the risks of explosion and collapse due to internal pressures which are inherent in all such steam generating equipment. Designed by Tariff advisory Committee in India under the direct control of IRDA.
Scope of Cover:
Arising out of explosion and collapse the policy covers.
Damage (other than fire) to the boilers and other pressure plant.
Damage (other than fire) to surrounding property disclosed at the time of the insurance.
Liability on account of death or bodily injury to any person not under the contract of employment.
Liability on account of damage to the property not belonging to the insured.
Benefits:
All losses following explosion or collapse, which are not covered by the fire policy, are covered by this policy. Since fire policy and boiler insurance policy are mutually exclusive, for adequate cover, both the policies need to be taken.
CONTRACTOR'S PLANT AND MACHINERY
This policy is suitable for contractors involved in construction business for covering all kinds of construction equipment like compressors, heavy duty cranes, boring machines, bulldozers, pipe jacking, and hauling equipment, pavers, excavators, loaders, road rollers, tunnel boring machines etc. can be covered under this policy.
Contractor's plant and machinery can be insured under CAR/EAR policy subject to 5% or Rs.25 lacs maximum. If the sum insured exceeds the above figures, a separate annual policy has to be taken. This policy is designed by Tariff advisory Committee of India under the direct control of IRDA.
Who can insure?
This policy is available to contractors involved in construction business for covering all kinds of construction equipment like compressors, heavy duty cranes, boring machines, bulldozers, pipe jacking, and hauling equipment, pavers, excavators, loaders, road rollers, tunnel boring machines etc.
What can be insured?
The policy offers cover against loss or damage due to sudden unforeseen eventualities such as:
Fire, lightning, explosion/implosion/aircraft damage, riot strike, malicious and terrorist damage, earthquake, subsidence, landslide, rockslide, storm, tempest, hurricane, typhoon, tornado, flood and inundation as are covered by the fire policy.
Burglary & theft
Damages while at work due to faulty handling, dropping or falling, collision and impact.
The policy can be extended to cover the additional risks of third party property damage and injuries; loss or damage to surrounding property, expenses incurred on overtime, express freight, air freight, additional customs duty, clearance of debris following a loss for additional premium.
What is the scope?
Fire etc perils, Burglary, theft, terrorism, Accidental damage while at work due to faulty manhandling
PLATE GLASS INSURANCE
It covers against the actual breakage of plain glass of ordinary glazing quality completely and securely fixed. This policy is designed by Tariff advisory Committee in India under the direct control of IRDA.
Accidental breakage of plate glass is excluded in all other policies but this policy covers it. Sometimes the labor cost of replacement may be much more than the cost of the glass itself hence this policy must be taken.
What is covered?
Accidental breakage of glass
What can be covered?
Wherein plate glass has been used as a door, partition, desktop or as an interior.
NEON SIGN INSURANCE
Neon Sign Insurance Policy covers expenses for Neon sign or glow sign installation, displayed at business or office premises or on the sides or roof of the buildings or on road ways.
This provides cover for the neon signboard put up by a corporate or an establishment. This policy is designed by Tariff advisory Committee in India under the direct control of IRDA.
What is covered?
The main coverage of the Policy is financial compensation in
Sec. I for loss or damage due to accidental external means or by fire, lightning, external explosion or theft.
Sec. II of Policy covers Legal Liability for accidental bodily injury to third Party and or damage to property of third Party. The legal expenses incurred with the consent of the company are also covered.
FIRE LOSS OF PROFIT INSURANCE
In case of a major fire loss, the business operations get interrupted resulting in reduced turnover and eventually in loss of profits.
But fixed or standing charges have to be incurred immaterial whether there has been any production or not. All these are not covered by the normal fire policy. It is here that the consequential loss policy comes into force. Thus for overall protection to the business and its profitability, consequential policy is necessary in addition to the standard fire and allied perils insurance policy.
This policy is designed by Tariff advisory Committee in India under the direct control of IRDA.
Basis of loss of profits insurance:
The profits of a business are related to the total income or turnover. If this is stopped or reduced, the profits are affected. Therefore, loss of profits is determined and measured with reference to reduction in turnover.
When does the cover start
a.Fire or other insured peril must occur at the insured premises.
b.Property used for the business of the insured at the insured premises must be destroyed or damaged.
c.The business must be interrupted or interfered with as a consequence.
d.The resulting loss is paid in accordance with the provision.
Indemnity period
It may vary from 3 months to 3 years. The choice of the indemnity period would be mainly influenced by the time that would be taken for reinstatement of the building or replacement of machinery, stocks, etc.
MACHINERY LOSS OF PROFITS
This policy is suitable for industries where interruptions or delays as a result of machinery breakdown or boiler explosion result in huge consequential losses. Where the time lag between the breakdown or loss and the restoration is large, this policy compensates for the loss of profits during the intervening period. This policy is designed by Tariff advisory Committee of India under the direct control of IRDA.
Scope of the policy
Consequential losses following loss or damage to the property insured under machinery breakdown and/or boiler and pressure plant insurance also covers actual financial losses suffered by the insured due to business interruption arising from: Reduction in turnover and Increased in cost of working
What are covered?
The losses as a result of reduced turnover because of the machinery damaged and the additional expenditure necessarily incurred for avoiding or reducing the fall in turnover for the interruption period are compensated under this policy. However, the policy is subject to a time excess of 7 days (14 days in case of petrochemical risks) which means that interruptions for periods less than or equal to these periods are not covered.
