Industrial All Risk Insurance

This policy is a Comprehensive Package Policy designed to safeguard large industries against various risks and perils encountered during operations.

Key Features

  1. Coverage:
    • Buildings, Machinery, Furniture, Fixtures, and Electrical Installations are insured on a reinstatement value basis.
    • Stock is covered on a market value basis.
    • Underinsurance is ignored if it does not exceed 15% of the sum insured.
    • Covers equipment and machinery sent for repairs outside the premises for up to 60 days.
    • Transit risks within the industry compound are also covered.

Benefits

  • Provides umbrella coverage under a single policy.
  • Offers an economical premium rate.
  • Protects against overlooked risk exposures.
  • Covers risks beyond the scope of standard policies like Fire or Machinery Breakdown (MBD).
  • Consolidates multiple locations under one policy.

Eligibility

  • Applicable to industrial units, including manufacturing and storage units (excludes petroleum refineries, petrochemical, and fertilizer plants).
  • Designed for units with a sum insured of ₹100 crores or more across one or multiple locations in India.

Coverages

Section I: Material Damage

  • Covers damage due to Fire, Special Perils, Earthquake, Burglary, Machinery or Electronic Equipment Breakdown, and Boiler Explosion.

Section II: Business Interruption

  • Coverage for business interruptions:
    • FLOP (Fire Loss of Profit): Due to fire or special perils.
    • MLOP (Machinery Loss of Profit): Due to machinery breakdown.
  • The Sum Insured should represent the projected gross profit.

Add-on Covers

Section I: Material Damage

  • Architects, Surveyors, and Consulting Engineers’ Fees.
  • Property Designation Clause.
  • Escalation Clause.
  • Omission of Additions or Alterations Clause.
  • Temporary Removal of Stocks.

Section II: Business Interruption

  • Suppliers’ and Customers’ Premises Extension.
  • Failure of Utility Services (at terminal ends).

Exclusions

Section I: Material Damage

  • Faulty design, materials, or workmanship.
  • Utility interruptions or effluent system failures.
  • Collapse or cracking of buildings.
  • Fraud, theft, or larceny.
  • Natural processes like coastal erosion, normal wear, and tear.
  • Pollution or contamination.
  • Deliberate acts, negligence, or war-like operations.
  • Nuclear risks or destruction by public authority.

Section II: Business Interruption

  • Public authority restrictions.
  • Lack of sufficient capital for timely restoration.
  • Issues with electronic installations or data corruption.
  • Deliberate data erasure or distortion.
  • Delays or cessation of work.
  • Nuclear risks or war-like operations.

Claim Process

  1. Intimation:
    Notify the insurer immediately, provide details of the loss, and estimate the extent of damage.
  2. Minimizing Loss:
    Take steps to reduce the impact of the loss and prevent further damage.
  3. Survey and Cooperation:
    Extend full cooperation to the insurer and the appointed surveyor for assessing the damage.
  4. Documentation:
    Submit required documents like:
    • Claim form and claim bill.
    • Policy copy.
    • Financial records or proof supporting the loss claim.
  5. Safeguarding Damaged Property:
    Retain the damaged property securely until instructions are received regarding its disposal.
  6. Proof Submission:
    Provide all necessary records to help the insurer establish the cause and liability for the loss.

This policy offers holistic protection, ensuring financial safety for industries facing unpredictable risks.