Standard Fire & Special Perils Policy
Policy Coverage:
This Policy may cover various assets such as Building, Plant & Machinery, Stock, and Furniture, Fixtures against loss or damage due to:
- Fire, Lightning, Explosion / Implosion.
- Aircraft Damage,
- Riot, Strike & Malicious Damage.
- Storm, Cyclone, Tempest, Hurricane, Tornado, Flood and Inundation.
- Impact Damage, Subsidence and Landslide including Rockslide.
- Bursting and/or overflowing of Water Tanks, Apparatus and Pipes.
- Missile testing operations.
- Leakage from Automatic Sprinkler Installations and Bush Fire.
Add-on Coverage:
The Add-on covers offered are as follows:
- Fees for Architects, Surveyors and Consulting Engineers are beyond 3% of the claim amount.
- Expenses for removal of Debris beyond 1% of claim amount.
- Deterioration of Stocks in Cold Storage premises due to power failure /change in temperature arising out of loss or damage to the cold storage machinery (ies) due to operation of insured peril.
- Forest Fire.
- Impact Damage due to Insured’s own Rail/Road Vehicles, Forklifts, Cranes, Stackers and the like and articles dropped there from
- Spontaneous Combustion.
- Omission to insure additions, alterations or extensions.
- Earthquake damage caused by Fire and Shock.
- Temporary removal of stocks is covered to any other premises for the purpose of production or processing or finishing or similar purposes.
- Loss of Rent and / or additional expenses of rent for alternative accommodation.
- Start Up Expenses
- Spoilage Material Damage Cover
- Leakage And Contamination Cover
- Temporary Removal of Stocks Clause
Specific Exclusion:
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.
Industrial all Risk Policy
Scope of cover:
All industrial risks (other than risks ratable under Petrochemical Tariff) having overall Sum Insured of Rs.50 crores and above in one or more locations in India shall be eligible for Industrial All Risks Policy.
Section I: Material Damage:
a) Standard Fire & Special Perils
b) Burglary
c) Machinery Breakdown/ Boiler Explosion/Electronic Equipment Insurance
Section II: Business Interruption
a) Fire Loss of Profit
b) Optional Cover: Machinery Loss of Profit
Sum Insured
a) The policy insofar as it relates to Buildings, Machinery, Furniture, Fixtures, Fittings & Electrical Installations shall be on Reinstatement Value basis only, while the Stocks shall be covered on Market Value basis.
However, the facility of declarations for stocks shall not be available under the IAR Policy.
b) The Policy shall be subject to the condition of average. However, Under Insurance on each item of the schedule will be ignored if it does not exceed 15% thereat.
Specific Exclusion:
1) Faulty or defective design materials or workmanship inherent vice latent defect gradual deterioration deformation or distortion or wear and tear
2) Interruption of the water supply gas electricity or fuel systems or failure of the effluent disposal systems to and from the premise.
Fire Loss of Profit Policy
Scope of cover:
This policy operates in the event of damage to the premises of an insured due to any peril insured under the Standard Fire & Special Perils Policy, causing an interruption to his business. It enables the insured to recover:
1) His Loss of Gross Profit due to a reduction in turnover
2) Increased Cost of Working incurred in minimizing that loss of Gross Profit.
Definitions
Gross Profit is the sum of Net Profit and Insured Standing Charges.
Net Profit
Net Profit is the ‘Net Trading Profit’ excluding capital receipts, accretions and outlay chargeable to capital after making provisions for all standing charges but prior to deduction of tax.
Standing Charges
Standing Charges are expenses which do not diminish proportionately with a reduction in turnover. Indemnity Period commences with the date of the damage, and lasts till such time as the business is restored to its pre-damage level, or the period stipulated in the policy, whichever is earlier. This policy insures earnings of the business lost during the Indemnity Period.
Basis of Sum Insured
This is based on the annual net profit of the business as per the previous year’s accounts plus the ‘standing charges’. An Insured is entitled to return of premium (not exceeding 50% of the premium paid) in case the Gross Profit earned during the financial year concurrent with the period of insurance is less than the Sum Insured.
Extensions:
- Loss of Wages
- Lay off & retrenchment
- Auditors/Accountants Fees
- Loss of Goods Lying at Suppliers Premises
- Loss due to accidental failure of public electricity/gas/water supply.
