Standard Fire and Special Perils

Highlights

• The Standard Fire and Special Perils Policy covers all properties on land (excluding cost of land), moveable or immovable, at various locations against named perils.
• Special Types of Policies are designed for Stocks (declaration and floater), Building, Plant & Machinery keeping in mind the nature of property, proposers' requirements, and basis of indemnification.
• Policy can be extended to cover certain additional perils and expenses at additional premium.

Scope

Properties that are covered:

• Building (including plinth and foundations, if required):
  • Whether completed or in course of construction (excluding the value of land).
  • Interiors, Partitions, and Electricals.
• Plant & Machinery, Equipment & Accessories (including foundations, if required):
  • Bought Second hand.
  • Bought New.
  • Obsolete Machinery.
• Stocks:
  • Raw Material.
  • Finished Goods.
  • In process.
  • In trade belonging to Wholesaler, Manufacturer, and Retailer.
• Other Contents such as:
  • Furniture, Fixtures, and Fittings.
  • Cables, Piping.
  • Spares, Tools, and Stores.
  • Household goods etc.
• Specific Items such as:bullion, unset precious stones, curios, works of art, manuscripts, plans, drawings, securities, obligations or documents, stamps, coins or paper money, cheques, books of accounts, computer system records, explosives.

Perils Covered:

• Fire
• Lightning
• Explosion / Implosion
• Aircraft damage
• Riot, Strike, Malicious damage (RSMD Perils)
• Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon, and Tornado.
• 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.

Expenses Covered:

• Architects, Surveyors, and Consulting Engineers' Fees up to 3% of the claim amount.
• Expenses incurred for removal of debris to clear the site up to 1% of the claim amount.

Exclusions Applicable:

1. Losses/ Expenses not covered:
   • Applicable Deductibles as per policy.
   • Expenses incurred on Architects, Surveyors' Consultant Engineers' fees and Debris Removal in excess of 3% and 1% of claim amount respectively.
   • Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind.
2. Perils not covered:
   • War and allied perils.
   • Ionising radiations and contamination by radioactivity.
   • Pollution or Contamination.
3. Properties not covered:
   • Items like manuscripts etc. 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 over-running, excessive pressure, short-circuiting, arcing, self-heating, or leakage of electricity, from whatever cause including lightning.
4. Loss / damage / destruction of Boilers, Economisers, or other Vessels in which steam is generated, machinery or apparatus subject to Centrifugal force, by its own explosion/implosion.

Location of Risk:

1. The proposer shall describe all locations where the properties are built or installed or stored or kept at the inception.
2. Any change of location of risk shall be covered on intimation of such change.
3. Change of ownership in the insured property shall be intimated so that the new owner may be covered by means of suitable endorsement.
4. Any material change in the location of risk, trade, or manufacturing activities shall be intimated to the insurer so that the changes are endorsed to offer continuous cover.

Period of Coverage:

• Fire Policy is an annual policy, generally, renewable each year.
• Policy can be cancelled at any time during the currency with a suitable refund of premium for the unexpired period.

Add-on covers:

• 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 own Vehicles, Forklifts, and the like and articles dropped therefrom.
• Spontaneous Combustion.
• Omission to insure additions, alterations, or extensions.
• Earthquake (Fire and Shock).
• Spoilage material damage cover.
• Leakage and contamination cover.
• Temporary removal of stocks.
• Terrorism.

Expenses:

• Architects, Surveyors, and Consulting Engineers' Fees (in excess of 3% claim amount).
• Debris Removal (in excess of 1% of claim amount).
• Loss of rent.
• Insurance of additional expenses of rent for alternative accommodation.
• Start-up Expenses.

Note:Policy details given are indicative, not exhaustive. Please contact your nearest NIA office for further details.