New India Bharat Sookshma Udyam Suraksha
Fire Insurance Policy
Fire Insurance Policy
New India Bharat Sookshma Udyam Suraksha Policy provides insurance cover for physical loss or damage to or destruction of insured property relating to your business. This policy is meant for enterprises where the total value at risk across all insurable asset classes at one location does not exceed ₹5 Crore (Rupees Five Crore) at the policy commencement date.
Important Dos and Don’ts:
When You Fill Up the Proposal Form: |
• Read the instructions in the proposal form carefully before filling up the details. |
• Understand the basis for arriving at the Sum Insured for Building, Plant and Machinery, Furniture, Fixtures, Fittings, Stocks, and other Contents before filling up the details. This is given below in this Prospectus under the heading ‘Sum Insured’. It is also explained in the Proposal Form. |
• Make sure you have opted for the correct policy based on the total Sum Insured. |
• Fill up the proposal form completely and answer all the questions truthfully. |
During the Policy Period: |
• Make full disclosure in the proposal and related documents about yourself and all the insurable assets. |
• Remember, the information you give us is the basis of our contract with you. |
• You must inform us of any changes in the business premises or if it remains unoccupied for more than 30 days. |
• Do not allow unauthorized persons to occupy your premises. |
• Ensure that all security procedures are in force. |
When You Have a Claim: |
• Give notice of loss to us, as required. |
• Inform the respective authorities, as required. |
• Make true and full disclosures in your claim form. |
• Give all documents supporting the claim. |
• Give full cooperation for inspection and investigation of the claim. |
The Insurance Cover:
1. Standard Cover: | ||
We cover physical loss or damage, or destruction caused to the building and structures, plant and machinery, stock, and other assets relating to your business. These are the Insured Properties. | ||
If any Insured Property is lost, damaged, or destroyed, we provide cover as follows: | ||
Your Loss | Condition | We Pay, but Not More Than the Sum Insured |
Any Insured Property is damaged (Partial Loss) | You have repaired such property. | Cost of repairs |
If any Insured Stock is damaged (Partial Loss) | Extent of the loss of such Partial Loss | |
Any Building or Plant and Machinery or Furniture, Fixture, Fittings is completely destroyed (Total Loss) | You have rebuilt the building or reinstated/replaced such property. | Reinstatement/Replacement Value (i.e., amount at which the Insured Property can be reinstated or replaced by a similar property, without deducting depreciation) |
Stock is completely destroyed (Total Loss) | a) For raw material: Landed Cost at Your Premises, b) For stock in process: Input Cost of the stock at the time of damage, c) For finished stock: the Manufacturing Cost of the finished stock or the Contract Price of goods sold but not delivered. | |
Any Building, Plant and Machinery, Furniture, Fixture and Fittings is completely destroyed (Total Loss) | You have not rebuilt the building or reinstated other property. | Market Value (Reinstatement Value less Depreciation) |
Conditions:
2. In-built Covers:Under the Standard Cover, we also pay the following:
In-built Cover | Details |
1. Additions, alterations, 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). |
2. Stocks floater basis | Loss to stocks located at more than one named location. |
3. Temporary removal of stocks | Loss to stock temporarily removed to other premises for fabrication, processing, or finishing up to 10% of value. |
4. Cover for Specific Contents |
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5. Start-Up Expenses | Start-up cost incurred by you in respect of insured risk consequent upon a loss or damage due to insured events up to ₹1 Lakh (Rupees One Lakh). |
6. Professional fees | Reasonable fees of architects, surveyors, and consulting engineers up to 5% of the claim amount. |
7. Cost of removal of debris | Reasonable expenses for removal of debris up to 2% of the claim amount. |
8. Costs compelled by Municipal Regulations | Additional cost of reconstruction of property incurred solely for complying with municipal regulations. |
Which unexpected events are covered?
We pay for the physical loss, damage, or destruction caused to Insured Property by the following unforeseen events occurring during the Policy Period. The events covered are given in Column A, and those not covered in respect of these events are given in Column B.
Column A | Column B |
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1. Fire, including due to its own fermentation, or natural heating or spontaneous combustion. | a. Caused by its undergoing any heating or drying process, or b. Burning of Insured Property by order of any Public Authority. |
2. Explosion or Implosion | a. Caused to boilers, economizers or other vessels, machinery or apparatus in which steam is generated, or their contents, resulting from their own explosion or implosion. b. Caused by centrifugal forces. |
3. Lightning | - |
4. Earthquake, volcanic eruption, or other convulsions of nature | - |
5. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Tsunami, Flood and Inundation | - |
6. Subsidence of the land on which Your Premises stand, Landslide, Rockslide | a. Caused by normal cracking, settlement or bedding down of new structures, b. The settlement or movement of made-up ground, c. Coastal or river erosion, d. Defective design or workmanship or use of defective materials, e. Demolition, construction, structural alterations or repair of any property, or ground works or excavations. |
7. Bush fire, Forest fire, Jungle fire | - |
8. Impact damage of any kind (e.g., damage caused by impact of or collision with any external physical object, such as a vehicle, falling trees, aircraft, or walls) | a. Caused by pressure waves from aircraft or other aerial or space devices traveling at sonic or supersonic speeds, b. Caused by vehicle, animal or aircraft belonging to or owned by Insured or their employee while acting in the course of employment. |
9. Missile testing operations | - |
10. Riot, Strikes, Malicious Damages | a. Caused by total or partial cessation of work or the retardation or interruption of any process or operations or omissions of any kind, b. Temporary or permanent dispossession, confiscation, commandeering, requisition or destruction by order of the government or any lawful authority, c. Temporary or permanent dispossession of any Building by unlawful occupation by any person. |
11. Acts of terrorism | Exclusions as per Terrorism Clause attached. |
12. Bursting or overflowing of water tanks, apparatus, and pipes | - |
13. Leakage from automatic sprinkler installations | a. Caused by repairs or alterations in the Building in which Your Business is located, b. Caused by repairs, removal, or extension of any sprinkler installation, c. Caused by defects in the construction known to You. |
14. Theft | Within 7 days from the occurrence of, and proximately caused by, any of the above Insured Events if it is: a. Of any article or thing outside Your Premises, b. Of any article or thing attached from the outside of the outer walls or the roof of Your Premises, unless securely mounted. |
Standard Add-on Covers
You can purchase standard Add-on covers under New India Bharat Sookshma Udyam Suraksha Policy. You must apply for these covers and pay additional premium.
Declaration Policy for Stocks
You can opt for a Declaration Policy to take care of frequent fluctuations in stocks/stock value, subject to certain conditions. Please read the Clause and understand these conditions.
Which property can be covered under this policy?
This policy covers the following properties in Your premises, that is, the place You carry on Your business. The properties must be located in Your premises, except some properties that You declare, and the Policy covers in special situations. New India Bharat Sookshma Udyam Suraksha policy covers the following properties:
Property Type | Description |
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1. Any building or structure in Your premises | This may be a shed, flat, house, unit of a building. It may be made of any material and includes:
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2. Plant and Machinery | This includes all equipment, machinery, pipes and cables, spares, computers, servers, and preloaded licensed system software, located within any structure or in the open area of Your premises. It includes:
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3. Stock of goods or merchandise | It may be:
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4. All other assets | These are all other tangible properties located in Your premises and used for Your business. It includes:
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Underinsurance
Underinsurance waiver up to 15%: This is a special feature of New India Bharat Sookshma Udyam Suraksha policy, where We waive underinsurance up to 15%. The Sum Insured for each item of Insured Property must be sufficient to pay for Reinstatement/Replacement of that Property on the date of loss. If the Reinstatement/Replacement Value of the Insured Property, including additions, alterations, erections, and new acquisitions, is more than the Sum Insured (except for the 15% waived), it amounts to underinsurance and will reduce proportionately the amount that We will pay for Your claim. Each item of Insured Property is subject to this condition separately.
If, at the time of damage, the Sum Insured applying to the relevant Buildings, Plant and Machinery, Furniture, Fixtures, Fittings, Stocks, and other Contents is less than 85% of the value of Insurable Assets, You will be responsible for the difference, and You will bear a proportionate share of the loss.
Exclusions (What We Do Not Pay)
We do not cover losses, expenses, or any loss, damage to, or destruction of the Insured Property, directly or indirectly as a result of or caused by the following events:
Note: The policy details given are indicative and not exhaustive. Please contact your nearest NIA office for further details.