All Risks Insurance

An All Risks Insurance policy covers the loss or damage to jewelry and valuables caused by accidents or unforeseen events while the items are anywhere in India. The policy will cover up to the sum insured for each item during the policy period, with the total coverage not exceeding the overall sum insured. If an item is damaged but can be repaired, the insurer will cover the expenses required to restore the item to its original condition.

Coverage

This policy covers loss or damage to insured property due to fire, theft, or any other unforeseen event. It protects against loss or damage by any means, excluding the risks specifically listed as exclusions in the policy.

Exclusions

The following exclusions apply to the policy:

  • Terrorism: Any loss, damage, cost, or expense resulting directly or indirectly from an act of terrorism. This also includes losses due to actions taken to control or prevent terrorism unless specifically included.
  • Excess: An applicable normal excess of 5% of the claim amount, with a minimum of Rs. 1,000 for each loss.
  • Damage from cleaning, dying, bleaching, repairing, or renovation: Damage arising from wear and tear, moths, insects, mildew, or any gradually occurring issues.
  • Fragile items: Loss or damage to brittle or fragile items like crockery, glass, cameras, binoculars, lenses, sculptures, musical instruments, and sports gear, unless caused by fire or an accident during transport.
  • Mechanical or electrical issues: Loss due to mechanical breakdown or internal damage unless caused by external accidents.
  • Watches and clocks: Overwinding, denting, or internal damage to watches and clocks.
  • Financial instruments: Loss or damage to money, securities, documents like promissory notes, or credit/debit cards.
  • Consumable goods: Loss or damage to perishable items, consumables, or items used in journeys like umbrellas, chains, or items being worn or carried.
  • Leakage and spillage: Loss due to leakage, spilling, or exposure of dangerous materials.
  • Theft from vehicles: Theft from a vehicle, unless it’s a fully enclosed saloon car with securely locked doors and windows.
  • War or political events: Loss arising from war, rebellion, insurrection, military action, or government interference, including customs seizures.
  • Radiation and contamination: Losses caused by radiation, contamination, or nuclear material.
  • Consequential loss: Losses arising indirectly from the insured event.
  • Deliberate action: Loss resulting from actions taken by the insured that increased the risk unnecessarily.

Important Notes

  • Single Article Limit: Unless otherwise stated, the insurer’s liability for any single article or pair of articles will not exceed 5% of the total sum insured.
  • Articles in Pairs or Sets: If an insured item is part of a set or pair, the insurer’s liability will not exceed the value of the specific part that was lost or damaged.

Key Benefits

  • Comprehensive coverage for industrial unit risks.
  • Covers a wide range of perils under the Material Damage section.
  • Optional coverage for Machinery Loss of Profits.
  • Losses due to business interruption are covered.
  • Discounts on premiums if higher deductibles are chosen.

Sum Insured

The sum insured should reflect the current market value of the items insured, including packaging (e.g., suitcases, trunks). For high-value items, a certificate from a valuer may be required to determine the sum insured. A list of the items to be insured should be submitted to the insurer at the time of policy issuance, ensuring that items like bags and suitcases are included.

Claims Procedure

In the event of a loss, the following steps must be taken:

  1. Report the loss: Inform the insurer about the occurrence of the loss and provide a written statement detailing the nature and extent of the loss, as well as an estimate of the damage.
  2. Provide proof: Submit documents such as proof of destruction for baggage, a copy of the FIR in case of theft, a completed claim form, the claim bill, a copy of the policy, and identification of the insured item.