Industrial All Risk Insurance

This policy is a Comprehensive Package Policy which covers risks and perils, which a large industry commonly encounters during its operation. This policy covers Buildings, Machinery, Furniture, Fixtures, Fitting & electrical installations on Reinstatement value, while the stock is covered on a market value basis.
Underinsurance on each item of the schedule will be ignored if it does not exceed 15% of the sum insured. The policy also covers equipment and machinery sent for repairs outside the premises for 60 days. Transit risk inside the compound of an industry is also covered.

Benefits

• Umbrella /Comprehensive Cover under one single policy
• Economical Rate of Premium
• Protects against all possible aspects of risk exposure which may have been overlooked inadvertently
• Covers eventualities which cannot be taken care of by any of the present operational policies available like Fire, MBD Policy etc
• Multiple locations can be covered under one single policy

Eligibility

• Industrial Units - Both manufacturing as well as Storage Units. (Excluding Petroleum Refineries, Petrochemical and Fertilizer Plants)
• Normally Overall sum insured of Rs. 100 crores and above in one or more locations in India

Coverages

This is a comprehensive policy to cover damage to your assets from all unforeseen circumstances except for those defined "Exclusions". The policy offers coverage under two sections:

• Section I - Material Damage
  Fire and special perils, Earthquake, Burglary, Machinery or Electronic Equipment breakdown and Boiler explosion
• Section II - Business Interruption
  The Sum Insured under this Section should represent the projected gross profit.
  • FLOP (Fire Loss of Profit): Business interruption due to fire and all special perils
  • MLOP (Machinery Loss of Profit): Business interruption due to machinery breakdown

Add on Covers

• Section I (Material Damage)
  • Architects', Surveyors and Consulting Engineers' Fee clause
  • Designation of Property Clause
  • Escalation Clause
  • Omission to insure additions, alterations or extensions clause
  • Temporary Removal of Stocks clause
• Section II (Business Interruption)
  • Suppliers' and Customers' Premises extension
  • Failure of Utility services at the terminal ends

Exclusions

• Section I (Material Damage)
  The policy will not cover any claim due to:
  • Faulty or defective design materials or workmanship
  • Interruption of the water supply, gas, electricity or fuel systems or failure of the effluent disposal systems
  • Collapse or cracking of buildings
  • Larceny & Fraud
  • Coastal or river erosion
  • Willful act or gross negligence of the insured
  • Cessation of work, delay
  • War, warlike operations
  • Nuclear risks
  • The destruction of property by order of any public authority
  • Normal settlement or bedding down of new structures
  • Inherent vice, normal wear and tear
  • Pollution, contamination
  • Inventory losses
• Section II (Business Interruption)
  The policy does not cover loss resulting from interruption of or interference with the business, directly or indirectly, attributable to
  • Any restriction or reconstruction or operation imposed by any public authority
  • The insured's lack of sufficient capital for timely restoration or replacement of property lost, destroyed or damaged
  • Electronic installation, computer and data-processing equipment
  • Deliberate erasure loss, distortion or corruption of information
  • Deductible stated in the schedule
  • Willful act or gross negligence of the insured
  • Cessation of work, delay
  • War, warlike operations
  • Nuclear risks
  • The destruction of property by order of any public authority

Claim Process

In the event of loss, the following are immediate actions to be taken
Intimate the insurer the occurrence of loss, submit a full statement in writing of the claim, provide the nature and extent of loss and also the estimate of loss. Any delay in intimation might jeopardize the claim as the insurer may express an inability in accepting liability of the loss/damage.

• To take all steps to reduce and minimize the extent of loss/damage and liability.
• The proximate cause of the loss and assess the type/extent and whether it is within the scope of the policy.
• To extend full co-operation to the insurer and the surveyor appointed for completion of the survey work and for proper assessment of the loss.
• Produce all such records and proof as may be required by the surveyor or the insurer for arriving at the extent of loss and the liability under the policy.
• Provide documents such as claim form, Claim bill, copy of the policy, books of accounts etc.
• Keep the damaged property under the safe custody until advised by the surveyor/insurer regarding its disposal.
• Identification of the subject-matter insured.