This Policy can be issued for land-based properties only. Fire Insurance Policy Provides financial protection for the property against loss by fire and other Specified Perils. It also Pays for damages caused immediately following a fire caused by Smoke, Heat, Scorching and falling walls, due to Water or any other extinguishing media used in putting out fire, due to collapse of Floors and roofs consequent to fire, whilst being removed from the burning building in an effort to mitigate the loss.
It covers tangible properties like Buildings, contents of the buildings such as Machinery, plant and equipment, accessories, etc., Goods (Raw materials/Work in Process/Finished goods, packing materials etc.), Goods in open, Furniture, fixtures and fittings Pipelines (including contents) located inside or outside the compound.
Scope of cover
It is a named Perils Policy covering Fire, Lightning, Explosion/Implosion, Aircraft damage, Storm, Cyclone, Hurricane, Tornado, Flood, Impact Damage, Subsidence and Landslide, Riots, Strikes, Malicious Damage, Missile Testing Operations, Leakage from Automatic Sprinkler Installations, Bush Fire, Bursting and / or Overflowing of Water Tanks, Apparatus & Pipes.
Occupancies are classified as Non-Industrial Risks, Industrial/Manufacturing Risks, Utilities Storage / Warehouse Risks, Tank farms / Gas holders.
It is the actual value of the property insured & limit of Liability under the Policy. If there is under-insurance, the claim amount will be proportionately reduced by applying pro-rata average in the event of a Claim.
Types of Policies:
Reinstatement Value (RIV) Policy: In this the RIV clause is attached to Fire Policy. The insured will also have an option to insure the property (except for stocks) on a “Reinstatement value basis”, which shall be the cost of replacing or reinstating on the same site or any other site with property of the same kind or type but not superior to or more extensive than the insured property when new as on date of the loss. In the event of Loss amount payable is cost of reinstating the property of the same kind and type by new Property.
Market Value Policy: It is a requirement of this Insurance that the sums insured declared by the insured shall not be less than the “Market value” of the property insured. Value at which property of the same age and condition can be bought or sold. Stocks are insured under Market value Policy Only. Basis of Settlement is the actual cost of the property lost or damaged at the time of loss (excluding profit of any kind taking into consideration the wear and tear and depreciation for usage).
Type of Policy to cover stocks :To take care of frequent Fluctuations in stocks declaration Polices are issued for a Sum Insured selected by the Insured & monthly declarations based on average value at risk or highest value on any day of the month are to be submitted by insured each month.
Floater Policy – appropriate for stocks at various locations under a single sum insured. It is annual in nature except for those covering Dwellings which are long term in nature up to 10 years.
Declaration Policy – takes care of frequent fluctuations in stock/stock values
Floater Declaration Policy – combines the features of both floater and declaration policies
Add on Covers
Architects, Surveyors and Consulting Engineers fees (in excess of 3% of claim amount)
Debris Removal (in excess of 1% of claim amount)
Deterioration of Stock in Cold Storage
Impact Damage by insured's own vehicles etc.
Omission to insure Additions, Alterations or Extensions
Earthquake (Fire and Shock)
Spoilage Material Damage Cover
Leakage and Contamination Cover
Loss of Rent
Additional expenses on rent for Alternative Accommodation
Start Up Expenses
Loss, destruction or damage caused by war, invasion and act of foreign enemy hostilities or war like operations by the insured shall not be less than the “Market value” of the property insured. (whether war be declared or not), civil war, mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, rebellion, revolution, insurrection or military or usurped power
Pollution or contamination
Loss, destruction or damage to bullion or unset precious stones, works of art, plans drawing, securities, money etc and other such items
Loss, destruction or damage to the stocks in Cold Storage premises caused by change of temperature
Loss, destruction or damage to any electrical machine, apparatus, fixture, or fitting arising from or occasioned by over-running, excessive pressure, short circuiting, arcing, self heating or leakage of electricity from whatever cause (lightning included) provided that this exclusion shall apply only to the particular electrical machine, apparatus, fixture or fitting so affected and not to other machines, apparatus, fixtures or fittings which may be destroyed or damaged by fire so set up.
Expenses necessarily incurred on (i) Architects, Surveyors and Consulting Engineer's Fees and (ii) Debris Removal by the Insured following a loss, destruction or damage to the Property insured by an insured peril in excess of 3% and 1% of the claim amount respectively.
Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind or description whatsoever
Loss, or damage by spoilage resulting from the retardation or interruption or cessation of any process or operation caused by operation of any of the perils covered
Any Loss or damage occasioned by or through or in consequence directly or indirectly due to earthquake, Volcanic eruption or other convulsions of nature.
Loss or damage to property insured if removed to any building or place other than in which it is herein stated to be insured, except machinery and equipment temporarily removed for repairs, cleaning, renovation or other similar purposes for a period not exceeding 60 days
This Policy does not cover the deductibles stated in the Schedule in respect of each and every loss under various covers.
With effect from 1st April 2021, Provisions of AIFT covering Fire and Allied Perils Insurance for the Dwellings, Micro and Small level enterprises stand de-notified. They are governed by the Authority’s Guidelines IRDA/NL/GDL/MISC/004 and 005/01/2021 dated 4th Jan, 2021.
Dwellings:( Bharat Griha Raksha) for Home Building and/or Home Contents: for any Sum Insured
Bharat Sookshma Udyam Suraksha : 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 in India where the total ‘value at risk’ does not exceed ₹ 5 Crore (Rupees Five Crore) across all insurable asset classes at any one location at the commencement of the insurance.
Bharat Laghu Udyam Suraksha: for all the risks where the total ‘value at risk’ exceeds ₹ 5 Crore (Rupees Five Crore) but does not exceed ₹ 50 Crore (Rupees Fifty Crore) across all insurable asset classes at any one location at the commencement of the insurance cover