This is to inform that for all Fresh/Renewal/Rollover business having risk start date on or from 1st November 2018, the minimum deductibles in Fire and Engineering portfolio will stand revised as follows:
1. FIRE INSURANCE
| Sum Insured | Excess for AOG Perils | Excess for Non-AOG Perils |
|---|
| Up to INR 10 crore per location per insured | 10% of the claim amount, subject to a minimum of INR 15,000 | 5% of the claim amount, subject to a minimum of INR 15,000 |
| INR 10 crore to INR 100 crore per location per insured | 10% of the claim amount, subject to a minimum of INR 37,500 | 5% of the claim amount, subject to a minimum of INR 37,500 |
| INR 100 crore to INR 1,500 crore per location per insured | 10% of the claim amount, subject to a minimum of INR 7.50 lakhs | 5% of the claim amount, subject to a minimum of INR 7.50 lakhs |
| INR 1,500 crore to INR 2,500 crore per location per insured | 10% of the claim amount, subject to a minimum of INR 37.50 lakhs | 5% of the claim amount, subject to a minimum of INR 37.50 lakhs |
| INR 2,500 crore and above per location per insured | 10% of the claim amount, subject to a minimum of INR 75 lakhs | 5% of the claim amount, subject to a minimum of INR 75 lakhs |
Note 1 – For floater policies / floater declaration policies deductible applicable will be based on the value at risk of the affected location.
Note 2 – Entire set of assets associated with a cross country occupancy such as road (including bridges, culverts, signages, etc) or pipeline should have the following deductibles even if insured through multiple policies (for all risks having sum insured below INR 2500 crores).
For claims arising out of AOG perils: 10% of the claim amount subject to a minimum of INR 10 lakhs
For claims arising out of other than AOG perils: 5% of the claim amount subject to a minimum of INR 2.5 lakhs
– Irrespective of the fact that separate policy is given to road side assets, toll plaza and roads the deductible would be as above.
Note 3 –
a) The limit for sum insured is combined limit for SFSP + BI (if any) per location
b) In case locationwise BI is not available or provided, then the total BI Sum Insured should be added to the peak location to arrive at the deductible applicable.
1.2 Business Interruption (FLOP) –
Non Large Risks –
Petrochemical Risk, Chemical risks using materials with flash point less than 32 degrees Celsius, Power plants (thermal & gas) and Steel plants – 14 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
Other than above risks – 7 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
Large risks –
Petrochemical Risk, chemical risks using materials with flash point less than 32 degrees Celsius, Power plants (thermal & gas), Steel plants – 21 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
Other than above risks – 14 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
1.3 Industrial All Risk Policy
1.3.1 Policies having Sum Insured upto INR 100 Cr per location for PD & BI
Material Damage:
| Claim Type | Excess Percentage | Minimum Excess Amount |
|---|
| AOG Perils | 10% of the claim amount | INR 7.50 lakhs |
| Non-AOG Perils | 5% of the claim amount | INR 7.50 lakhs |
Business Interruption (FLOP)-
Petrochemical Risk, chemical risks using materials with flash point less than 32 degrees, Power plants (thermal & gas), Steel plants – 14 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
Other than above risks – 7 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
Business Interruption (MLOP) – 14 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
1.3.2 Policies having Sum Insured equal to or above INR 100 Cr and up to INR 1500 Cr per location for PD & BI.
Material Damage:
| Claim Type | Excess Percentage | Minimum Excess Amount |
|---|---|---|
| AOG Perils | 10% of the claim amount | INR 15 lakhs |
| Non-AOG Perils | 5% of the claim amount | INR 15 lakhs |
Business Interruption (FLOP)-
Petrochemical Risk, chemical risks using materials with flash point less than 32 degrees, Power plants (thermal & gas), Steel plants – 14 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
Other than above risks – 7 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
Business Interruption (MLOP) – 14 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
1.3.3 Policies having Sum Insured equal to or above INR 1500 Cr and up to INR 2500 Cr per location for PD & BI.
Material Damage:
For claims arising For claims arising
out of AOG perils out of perils other than AOG
10% of the claim amount 5% of the claim amount
subject to a minimum of subject to a minimum of
INR 37.50 lakhs INR 37.50 lakhs
Business Interruption (FLOP)-
Petrochemical Risk, chemical risks using materials with flash point less than 32 degrees, Power plants (thermal & gas), Steel plants – 14 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
Other than above risks – 7 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
Business Interruption (MLOP) – 14 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
1.3.4 Policies having Sum Insured equal to or above INR 2500 Cr per location for PD & BI.
Material Damage:
| Claim Type | Excess Percentage | Minimum Excess Amount |
|---|
| AOG Perils | 10% of the claim amount | INR 75 lakhs |
| Non-AOG Perils | 5% of the claim amount | INR 75 lakhs |
Note 4: The limit for sum insured is combined limit for MD + BI per location
1.4 Large Risk Policies – Policies having Sum Insured equal to and above INR 2500 Cr per location for PD & BI
Material Damage:
| Claim Type | Excess Percentage | Minimum Excess Amount |
|---|
| AOG Perils | 10% of the claim amount | INR 75 lakhs |
| Non-AOG Perils | 5% of the claim amount | INR 75 lakhs |
Business Interruption-
Petrochemical Risk, chemical risks using materials with flash point less than 32 degrees, Power plants (thermal & gas), Steel plants – 21 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
Other than above risks – 14 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
Business Interruption (MLOP) – 28 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
Note 5: The limit for sum insured is combined limit for MD + BI per location
| Claim Type | Excess Percentage | Minimum Excess Amount |
|---|
| AOG Perils | 10% of the claim amount | INR 10 lakhs |
| Non-AOG Perils | 5% of the claim amount | INR 2.5 lakhs |
2. ENGINEERING INSURANCE
2.1 Project Insurance – Contractors All Risk Insurance/ Erection All Risk Insurance (other than combined cycle power plants/ gas based power plants)-
2.1.1. For Sum Insured up to INR 1500 Cr. – All deductible amounts appearing in erstwhile TAC Tariff would be increased to 7.5 times of the minimum amount
2.1.2. For Sum Insured above INR 1500 Cr. and up to INR 2500 Cr – All deductible amounts appearing in TAC Tariff would be increased to 15 times of the minimum amount.
2.1.3. For Sum Insured above INR 2500 Cr. – All deductible amounts appearing in TAC Tariff would be increased to 22.50 times of the minimum amount.
For all sum insured slabs AOG excess to be increased to 10% of the claim amount subject to minimum as given above (applicable for AOG) without any upper limit.
2.1.4 Advance Loss of Profits Time excess- 30 days for first year+ 1 day for each erection month in addition to 12 months not exceeding 60 days.
2.2.1 Project Insurance – Specialized risks – (The following risks would be termed as specialized risks – All works in water, dams, canals, hydro power projects, tunnels, irrigation systems, caverns.) – All deductible amounts appearing in TAC Tariff would be increased to 22.50 times of the minimum amount.
AOG excess to be increased to 10% of the claim amount subject to minimum as given above (applicable for AOG) without any upper limit.
2.2.2 Advance Loss of Profits Time excess- 45 days for first year+ 1 day for each erection month in addition to 12 months not exceeding 75 days
2.3.1 Project Insurance – Combined cycle power plants/ gas based power plants
50 MW to 200 MW- 5% of claim amount subject to a minimum of 90 lakhs for testing & 30 lakhs for normal excess
200 MW to 300 MW- 5% of claim amount subject to a minimum 150 lakhs for testing & 75 lakhs for normal excess
300 MW and above- 5% of claim amount subject to a minimum 187.50 lakhs for testing & 112.50 lakhs for normal excess
AOG excess to be increased to 10% of the claim amount subject to minimum as given above (applicable for AOG) without any upper limit.
2.3.2 Advance Loss of Profits Time excess – 45 days for first year+ 1 day for each erection month in addition to 12 months not exceeding 75 days
2.4. Machinery Breakdown
1% of sum insured for each machine subject to a minimum of Rs 5,000
Note 6: Sum Insured of the machine should be declared as a whole and should not be apportioned towards parts of the machine.
2.5 Business Interruption (MLOP) – 14 days of Gross Profit for IP period of 9 months and 1 day extra for each month’s increase in IP period.
For Large Risks Business Interruption (MLOP) –
Business Interruption (MLOP) – 28 days of Gross Profit for IP period up to 9 months and 1 day extra for each month’s increase in IP period.
2.6. Contractors Plant & Machinery- For all Machinery under Group I,II,III,IV, including cranes above 10 tonne capacity under Group III
| Value of Equipment | Excess for AOG Perils | Excess for Non-AOG Perils |
|---|---|---|
| Up to Rs. 1 lakh | 15% of S.I., subject to a minimum of Rs. 7,500 | 3% of S.I., subject to a minimum of Rs. 2,250 |
| Over Rs. 1 lakh and up to Rs. 5 lakhs | 7.5% of S.I., subject to a minimum of Rs. 15,000 | 2.25% of S.I., subject to a minimum of Rs. 3,000 |
| Over Rs. 5 lakhs and up to Rs. 10 lakhs | 4.5% of S.I., subject to a minimum of Rs. 37,500 | 1.875% of S.I., subject to a minimum of Rs. 11,250 |
| Over Rs. 10 lakhs and up to Rs. 25 lakhs | 3% of S.I., subject to a minimum of Rs. 45,000 | 1.5% of S.I., subject to a minimum of Rs. 18,750 |
| Over Rs. 25 lakhs and up to Rs. 50 lakhs | 1.5% of S.I., subject to a minimum of Rs. 75,000 | 1.5% of S.I., subject to a minimum of Rs. 75,000 |
| Over Rs. 50 lakhs | 1.5% of S.I., subject to a minimum of Rs. 75,000 | 1.5% of S.I., subject to a minimum of Rs. 75,000 |
Boom Section- 20 % of claim amount subject to minimum of Rs. ,37,500
For Machinery under Group V – Rs.,3,750/- Flat. Excess.
2.7 Electronic Equipment Insurance- As per Tariff except for the following changes
Section I – a – i: For equipments with values upto Rs.1 lakh –
5 % of the claim amount subject to a minimum of Rs. 2,500
Section II – a : For equipments with values upto Rs.1 lakh –
5 % of the claim amount subject to a minimum of Rs. 2,500
2.8 Boiler Insurance- 5% of claim amount subject to a minimum of Rs 15,000/-
Note 7 – Applicable to Package Policies – The revision is applicable for respective Fire and Engineering sections of package policies.
Note 8 – The above deductibles will be applicable for:
All policies issued before 1st November 2018 but with inception period on or after 1st November 2018
All policies expiring on or after 1st November 2018 but renewal preponed to a date prior to 1st November 2018
