New India Bharat Sookshma Udyam Suraksha

New India Bharat Sookshma Udyam Suraksha

Fire Insurance Policy

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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:

You must commence the repairs, reinstatement, or reconstruction within a reasonable time after the date of damage or destruction. You must complete the repairs or reinstatement within 12 months from the date of damage or destruction or within such time as we may allow.
In all cases, we will not pay more than the relevant Sum Insured.
We will pay only to the extent required to bring the property to a condition substantially the same as, but not superior, better, or more extensive than its condition if it were new on the date it is damaged or destroyed.
You can reconstruct the new building on the same site or another site. If you reconstruct the new building on another site, we will not pay you more than what we would pay to reconstruct on the same site.

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	Cover for Money up to ₹50,000 (Rupees Fifty Thousand) during the policy period. Cover for documents such as deeds, manuscripts, business books, plans, drawings, securities, etc. up to ₹50,000 (Rupees Fifty Thousand) during the policy period. Cover for computer programmes, information, and data up to ₹5 Lakh (Rupees Five Lakh) during the policy period. Cover for personal effects of employees, Directors, and visitors up to ₹15,000 (Rupees Fifteen Thousand) per person for a maximum of 20 persons during the policy period.
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
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
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: Basement (if any), all fixtures and fittings permanently attached to the floor, walls or roof like electrical wiring, antennas Additional structures located on Your Premises for Your business such as garage, out-houses, security sheds, towers, verandah, tanks, compound walls, retaining walls, fences, gates, lifts, hoists, solar panels, air conditioning systems, security systems, etc. Water, gas, and sewage pipeline within the premises
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: Machines under repair Machines taken on hire or lease Foundation, bedding, or setting of the machines Accessories of machines
3. Stock of goods or merchandise	It may be: Finished goods, semi-finished goods, stock in process, stock invoiced and ready for dispatch Raw materials, packing materials Stock accepted for job work Stock held in trust for which You are responsible Stock in Open in the Insured premises
4. All other assets	These are all other tangible properties located in Your premises and used for Your business. It includes: Furniture and fixtures, office equipment, telephone equipment, electronic equipment, computers, etc. Canteen and kitchen equipment, gym and permanent sports equipment

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:

1. Excess of ₹5,000 for each claim (We will deduct ₹5,000 for each and every loss).
2. For terrorism risk, the Excess shall be as per the Clause attached with this policy.
3. Your deliberate, wilful, or intentional act or omission, or of anyone on Your behalf, or with Your connivance.
4. 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), except for ensuing losses to other insured property.
5. Loss, destruction, or damage to the stocks in cold storage premises caused by change in temperature.
6. Loss, damage, or spoilage resulting from the retardation or interruption of any process or operation caused by the operation of any Insured Event.
7. Your Premises or any Insured Building remaining continuously unoccupied for more than 30 days without prior written approval from Us.
8. War, invasion, act of foreign enemy, civil war, mutiny, rebellion, etc.
9. Ionising radiation or contamination by radioactivity from any nuclear fuel or waste.
10. Pollution or contamination unless the pollution resulted from an Insured Event.
11. Loss, destruction, or damage to bullion, unset precious stones, curios, or works of art unless declared separately in the Policy.
12. Loss of any Insured Property which is missing or mislaid.
13. Loss or damage to any Insured Property removed from Your Premises, except for machinery temporarily removed for repairs (not exceeding 60 days) or stock covered under ‘Temporary removal of stocks’.
14. Any reduction in market value of any Insured Property after repair or restoration.
15. Loss or damage covered by a marine policy in force at the time of loss, except in excess of the marine policy limits.
16. Consequential or indirect losses or damages (e.g., loss by delay, loss of income, medical expenses, etc.).
17. Costs, fees, or expenses for preparing any claim.

Note: The policy details given are indicative and not exhaustive. Please contact your nearest NIA office for further details.