This policy provides coverage for a wide range of risks, including fire, lightning, explosion/implosion, impact damage, aircraft impact, bursting or overflowing of water tanks, pipes, or apparatus, sprinkler leakage, subsidence, landslides, rockslides, riots, strikes, malicious damage, and missile testing operations.

Add-On Options:

The policy can be enhanced with additional covers for risks such as:

  • Earthquake
  • STH (Storm, Cyclone, Typhoon, Hurricane, Tempest, Tornado, Flood, Inundation)
  • Terrorism Risks
  • Other customizable add-ons

Benefits

Fire insurance offers several advantages, ensuring financial protection and peace of mind:

  1. Protection Against Fire and Allied Perils:
    • Covers damages to furniture, fixtures, and fittings in factories, offices, or other insured premises caused by fire or allied perils.
  2. Repair Cost Coverage:
    • Includes the cost of repairing machinery or equipment damaged due to perils covered under the policy.
  3. Affordable Premium Rates:
    • Offers comprehensive protection at economical premium rates.
  4. Comprehensive Coverage:
    • Provides extensive protection, including losses caused by natural calamities such as earthquakes, storms, floods, and inundation.

By securing this policy, businesses and property owners can safeguard their assets and ensure recovery from unforeseen incidents with minimal financial strain.

Coverage

The insurance covers all movable and immovable properties of the proposer on land (excluding those in transit), which are categorized into the following broad groups:

Buildings

  • Whether completed or under construction

Interiors, Partitions, and Electricals

  • Includes fixtures and fittings

Plant & Machinery, Equipment & Accessories

  • Bought second-hand
  • Bought new
  • Obsolete machinery

Stocks

  • Raw materials
  • Finished goods
  • Work in progress
  • Trade goods owned by wholesalers, manufacturers, and retailers
  • Consumables, stores, scrap, including packing materials

Other Contents

  • Furniture, fixtures, and fittings
  • Office equipment
  • Cables and piping
  • Spares, tools, and stores
  • Household goods

Specific Items

  • Bullion
  • Unset precious stones
  • Curios
  • Works of art
  • Manuscripts, plans, and drawings
  • Securities, obligations, or documents
  • Stamps, coins, or paper money
  • Cheques
  • Books of accounts
  • Computer system records
  • Explosives

This comprehensive coverage ensures protection for a wide range of property types, offering security for both tangible and specific valuable items.

Perils Covered

The policy provides coverage against damages or losses caused by the following perils:

  • Fire
  • Lightning
  • Explosion/Implosion
  • Aircraft damage
  • Riot, Strike, Malicious Damage, and Terrorism (collectively referred to as RSMTD Perils)
  • Impact from any Rail/Road vehicle or animal
  • Subsidence/Landslide, including rockslide
  • Bursting and/or overflowing of water tanks, apparatus
  • Leakage from Automatic Sprinkler Installation
  • Missile Testing Operations
  • Pollution or contamination resulting from any of the above perils
  • Bush Fire

Add-on Perils

In addition to the standard coverage, the proposer has the option to secure additional protection for the following perils, either at the start of the policy or during its term, with the payment of an additional premium:

  • Loss, damage, or destruction of property caused by:
    • Earthquake (Fire and Shock)
    • Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon, and Tornado (STFI)
    • Deterioration of Stocks in Cold Storage due to power failure after damage caused by an insured peril
    • Forest Fire
    • Impact damage caused by insured’s vehicles, forklifts, and similar equipment, and articles dropped therefrom
    • Spontaneous Combustion
    • Omission to insure additions, alterations, or extensions
    • Spoilage material damage
    • Leakage and contamination
    • Temporary removal of stocks
    • Terrorism

These add-on covers offer extended protection to safeguard against a broader range of risks, ensuring more comprehensive insurance coverage for your property.

Expenses Covered

The policy automatically includes coverage for the following expenses incurred due to the loss, damage, or destruction of a covered property caused by an insured peril:

  • Architects, Surveyors, and Consulting Engineers’ Fees: Up to 3% of the claim amount
  • Debris Removal Expenses: Up to 1% of the claim amount for clearing the site
  • Machinery and Equipment Temporarily Removed: Coverage for machinery and equipment removed for repairs, cleaning, renovation, or similar purposes for up to 60 days

Add-on Expenses

The following additional expenses can also be covered with the payment of an additional premium:

  • Architects, Surveyors, and Consulting Engineers’ Fees: For amounts exceeding 3% of the claim amount
  • Debris Removal: For amounts exceeding 1% of the claim amount
  • Loss of Rent
  • Insurance for Additional Rent Expenses: For alternative accommodation during repairs or restoration
  • Startup Expenses: Costs incurred in restarting operations

These coverages ensure that expenses related to restoring the property and continuing business operations are taken care of after a loss.

Exclusions

Properties Not Covered

The following items are excluded unless specifically declared:

  • Manuscripts and similar items
  • Software, unless specifically declared
  • Cold storage stocks damaged due to temperature changes
  • Loss, damage, or destruction of electrical or electronic equipment, fixtures, or fittings due to overrunning, excessive pressure, short-circuiting, self-heating, or leakage of electricity, including lightning
  • Loss, damage, or destruction of boilers, economizers, or other vessels used to generate steam or those subject to centrifugal force, arising from explosion/implosion

Perils Not Covered

  • War and related perils
  • Ionizing radiation and contamination by radioactivity, or nuclear and associated perils
  • Pollution or contamination
  • Coastal or river erosion
  • Forest fire
  • Loss or damage from spoilage caused by delays in processes due to insured perils

Losses/Expenses Not Covered

  • A deductible of 5% of each claim, subject to the following minimums:
    • Rs. 10,000 for sums insured up to Rs. 10 Crores
    • Rs. 25,000 for sums insured above Rs. 10 Crores and up to Rs. 100 Crores
    • Rs. 5,00,000 for sums insured above Rs. 100 Crores
  • Expenses for Architects, Surveyors, and Consulting Engineers’ fees, and debris removal exceeding 3% and 1% of the claim amount, unless specifically covered as an add-on
  • Loss of earnings, delays, loss of market, or any consequential or indirect losses

Claim Process

In the event of a loss, the following immediate actions should be taken:

  1. Notify the insurer about the occurrence of the loss, providing a written statement detailing the claim, including the nature, extent, and estimate of the loss. Any delay in notifying the insurer may jeopardize the claim, as the insurer may refuse liability for the loss or damage.
  2. Take necessary steps to minimize the extent of the loss, damage, and liability.
  3. Assess the proximate cause of the loss to determine its type, extent, and whether it falls within the scope of the policy.
  4. Cooperate fully with the insurer and the appointed surveyor during the survey process to ensure a proper assessment of the loss.
  5. Provide all required documentation, including the claim form, claim bill, and a copy of the policy, as requested by the surveyor or insurer.
  6. Ensure the damaged property is kept under safe custody until the surveyor/insurer advises on its disposal.
  7. Identify the insured subject matter for proper claim processing.