Standard Fire & Special Perils Policy

This insurance policy covers various perils such as fire, lightning, explosion/implosion, impact damage, aircraft impact, bursting/overflowing of water tanks/pipes/apparatus, sprinkler leakage, subsidence, landslide, rockslide, riots, strikes, malicious damage, missile testing operations. Additionally, there are add on options to cover Earthquake, STFI (Storm, cyclone, typhoon, hurricane, tempest, tornado, flood, inundation) and Terrorism risks and a host of other add-on cover also.

Benefits

Considering the amount that insurance company can pay for losses and save you from further problems, one shouldn't ignore fire insurance. Some of the benefits of fire policy:

• In the case of factory and office, the policy provides cover for damaged to Furniture Fixtures fittings due to Fire and/or allied perils.
• The insurance also covers the cost of repair of machines damaged due to Fire policy perils.
• Economical rates of premium.
• Wider coverage - which includes losses due to natural calamities like Earthquake, Storm, Floods and inundation etc.also.

Coverage

All moveable/ immoveable properties of the proposer on land (excluding those in transit) are broadly categorized as follows:

• Building
  • Whether completed or in the course of construction
  • Interiors, Partitions and Electricals
• Plant & Machinery, Equipments & Accessories
  • Bought Second hand
  • Bought New
  • Obsolete Machinery
• Stocks
  • Raw Material
  • Finished Goods
  • Work In process
  • In trade belonging to Wholesaler, Manufacturer and Retailer
  • Consumables & Stores & Scrape, including packing material
• Other Contents
  • Furniture, Fixtures and Fittings
  • Office Equipment
  • Cables, Piping
  • Spares, Tools and Stores
  • Household goods etc.
• Specific Items
  • bullion
  • unset precious stones
  • curios
  • work of arts
  • manuscripts
  • plans
  • drawings
  • securities
  • obligations or documents
  • stamps
  • coins or paper money
  • cheques
  • books of accounts
  • computer system records
  • explosives

Perils Covered

The policy provides protection against damages/fortuities triggered by the following perils:

• Fire
• Lightning
• Explosion/Implosion
• Aircraft damage
• Riot, Strike, Malicious and Terrorism damage (hereinafter called RSMTD Perils)
• Impact by 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 Operation.
• Pollution or contamination resulting from any of the above perils
• Any insured peril resulting from pollution and contamination
• Bush Fire

Add on Perils

In addition to the perils covered above, the proposer can opt to take additional cover in respect of the following perils at inception or during the currency of the policy on payment of additional premium:
Loss/ damage/ destruction of the property caused by

• Earthquake (Fire and Shock)
• Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon and Tornado (STFI)
• Deterioration of Stocks in Cold Storage premises due to power failure following damage due to an insured peril
• Forest Fire
• Impact damage due to Insured's Vehicles, Forklifts and the like and articles dropped therefrom
• Spontaneous Combustion
• Omission to insure additions, alterations or extensions
• Spoilage material damage cover
• Leakage and contamination cover
• Temporary removal of stocks
• Terrorism

Expenses Covered

The policy automatically covers the following expenses incurred following loss/damage/destruction of a covered property as a result of the operation of an insured peril.

• Architects, Surveyors and Consulting Engineers' Fees up to 3 % of the claim amount
• Expenses incurred for the removal of debris to clear the site up to 1 % of the claim amount
• Machinery and equipment temporarily removed for repairs, cleaning, renovation or other similar purposes for 60 days.

Add on Expenses:

• Architects, Surveyors and Consulting Engineer's Fees (in excess of 3% claim amount)
• Debris Removal (in excess of 1% of the claim amount)
• Loss of rent.
• Insurance of additional expenses of rent for alternative accommodation.
• Startup Expenses

Exclusions

• Properties not covered:
  • Items like manuscripts etc. unless specifically declared.
  • Software unless specifically declared.
  • Cold storage stocks due to change of temperature
  • Loss/damage/destruction of any electrical and/or electronic machine apparatus fixture or fitting arising from overrunning excessive pressure short-circuiting self-heating or leakage of electricity from whatever cause which includes lightning.
  • Loss/damage/destruction of boilers economizers or other vessels in which steam is generated oee with apparatus subject to centrifugal force by its explosion/implosion.
• Perils not covered:
  • War and allied perils
  • Ionizing radiations and contamination by radioactivity or Nuclear and allied perils
  • Pollution or Contamination.
  • Coastal or river erosion
  • Forest Fire
  • Loss or damage by spoilage resulting from the retardation of any process caused by the operation of any insured perils
• Losses/ Expenses not covered:
  • 5% of each and every claim subject to a minimum of Rs. 10000 if Sum insured is up to Rs. 10 Crores
  • 5% of each and every claim subject to a minimum of Rs. 25000 if Sum Insured is above Rs. 10 Crores and up to Rs. 100 Crores
  • 5% of each and every claim subject to a minimum of Rs. 500000 if the Sum Insured is above Rs. 100 Crores.
  • Expenses incurred on Architects Surveyors' Consultant Engineers fees and Debris Removal in excess of 3% and 1% of claim amount respectively unless specifically covered additionally.
  • Loss of earnings loss by delay loss of market or other consequential or indirect loss or damage of any kind

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.
• 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 policy etc.
• Keep the damaged property under the safe custody until advised by the surveyor/insurer regarding its disposal.
• Identification of the subject-matter insured.