Bharat Laghu Udyog Suraksha

This policy is applicable for Offices, Hotels, Shops, Industrial/Manufacturing risks, Utilities located outside the compound of Industrial/ Manufacturing risks, Storage risks outside the compound of Industrial/ Manufacturing risks and Tank farms/Gas holders outside the compounds of Industrial/ Manufacturing risks where the total value at risk across all insurable asset classes at one location exceed ₹ 5 Crore (Rupees Five Crore) but below 50 crores( fifty crores) at the policy commencement date. These include buildings, plant and machinery, stock, and all other assets. If value of Insurable Assets exceeds ₹ 50 Crore or reduces below 5 crores during the Policy Period, Policy will continue till the expiry. However, on renewal it must be replaced with the applicable policy.

Scope of Cover

Building with its basement (if any), fittings and fixtures, garage, towers, security sheds, internal roads, lifts, air condition systems, security systems, electric installations, fire sprinkler systems and other structures that are in the business premises.

Stock of goods or merchandise which may include finished goods, semi-finished goods, stock in process and raw material, packing material etc.

Other items like furniture, office and electronic equipment, canteen and kitchen equipment, computers etc.

Bullion or unset precious stones, any curious or works of art are excluded from the Policy. However, these items can be covered if they are specifically declared & with amount, and it is recorded in policy schedule.

Machinery and equipment temporarily removed for repairs, cleaning or similar purposes covered under the Policy for period not exceeding 60 (sixty) days.


Policy Coverage

Policy will cover physical loss or damage, or destruction caused to the Insured Property:

By Fire, including due to its own fermentation, or natural heating, or spontaneous combustion.

Explosion or Implosion, Lightning, Earthquake, volcanic eruption, or other convulsions of nature.

Storm, Cyclone, Typhoon, Tempest, Flood, and Inundation etc..

Subsidence of the land on which the Premises stand, Landslide, Rockslide, Bush fire, Forest fire etc..

Impact damage of any kind, Missile testing operations, Riot, Strikes, Malicious damages.

Acts of terrorism, Bursting or overflowing of water tanks, apparatus and pipes, Leakage from automatic sprinkler installations.

Theft within 7 days from the occurrence of, and proximately caused by, any of the above Insured Events


Key Features

This Policy gives three types of covers:

Standard Cover for the building and structures, plant and machinery, stock and other assets relating to the business.

In-built Covers: under the Standard Cover if Insurer agree to pay the claim for loss or damage to Insured Property, Insurer will also pay for the following loss or damage and expenses.

Additions, alterations, or extensions: Property that You erect, acquire, or add during the Policy Period is covered up to 15% of the sum insured for that item. (Excluding Stocks)

Temporary removal of stocks: Loss to stocks temporarily removed to other premises for fabrication, processing or finishing up to 10% of value.

Cover for Specific Contents: Cover for money up to ₹50,000 (Rupees Fifty Thousand) cover for documents such as deeds, manuscripts, business books, plans, drawings, securities etc. up to ₹50,000 (Rupees Fifty Thousand) cover for computer programmes, information and data upto ₹5 Lakh (Rupees Five Lakh) and cover for personal effects of employees, Directors and visitors up to ₹15,000 ( Rupees Fifteen Thousand) per person for a maximum of 20 (twenty) persons during the policy period.

Start-Up Expenses: Start-up cost incurred consequent upon a loss or damage due to insured events up to ₹ 5 Lakh (Rupees five Lakh) during the policy period.
Professional fees: Reasonable fees of architects, surveyors and consulting engineers up to 5 % of the claim amount.

Costs for removal of debris: Reasonable expenses for removal of debris up to 2% of the claim amount.

Costs compelled by Municipal Regulations: Additional cost of reconstruction of property incurred solely for complying with municipal regulations.


Standard Add-ons:

Following standard Add-on Covers are available on payment of additional Premium.

Floater Cover: Cover for stocks at multiple locations under one Sum Insured.

Declaration Policy for Stocks: Cover for frequent fluctuations in stock/stock values on declaration basis.


Basis of Sum Insured:

All Building/ Structure, Plant & Machinery, Furniture & Fixtures shall be insured on Reinstatement Value/Replacement Value basis only.

There is no option to insure on market value basis.

Stocks of raw material shall be covered on Landed Cost at the insured’s premises.

Stocks in process shall be covered at Input Cost of the stock.

Finished goods shall be insured for the Manufacturing Cost or the Contract Price of goods sold but not delivered.

In respect of finished goods sold but not delivered, where under the conditions of sale, the sale contract is cancelled by reason of any damage insured under the policy either wholly or to the extent of the damage, the Sum Insured shall be based on the Contract Price.

Underinsurance upto 15 % of Sum Insured is waived, but beyond that underinsurance is applicable to the full extent.

Valued policies can be allowed only for properties such as Curios, Works of Art, Manuscripts, Obsolete machinery and the like subject to the valuation certificate being submitted and found acceptable by the insurers.

Policy Excess: 5% of the claim amount subject to a minimum of Rs 10,000 for each claim.


It is not permissible:

To issue a policy beyond 12 months.

It is not permissible to cover only certain portions of the building.

To issue a policy covering only specified machinery (except Boilers), parts of machine or accessories thereof housed in the same block/ building.


Exclusions:

Deliberate, wilful or intentional act.

Loss, destruction, or damage to stocks in cold storage due to change in temperature.

War, invasion, war-like operations, Ionising radiation.

Pollution or contamination, Consequential or indirect loss or damage, Costs, fees or expenses for preparing any claim.

Insured premised or building remains unoccupied for more than 30 days.

Bullion or unset precious stones, any curious or works of art unless specifically declared.

Loss, damage or destruction to any electrical/electronic machine, apparatus, fixture, or fitting by over-running, excessive pressure, short circuiting, arcing, self- heating or leakage of electricity from whatever cause (lightning included). This exclusion applies only to the particular machine so lost, damaged or destroyed.