New India Bharat Flexi Laghu Udyam Suraksha Policy

Advance Loss

New India Bharat Flexi Laghu Udyam Suraksha Policy

Fire Insurance Policy

This policy is for enterprises where the total value at risk across all insurable asset classes at one location exceeds ₹ 5 Crore (Rupees Five Crore) but does not exceed ₹50 Crore ( Rupees Fifty Crore) at the policy commencement date

Coverage
  1. Fire, including due to its own fermentation, or natural  heating or spontaneous combustion
  2. Explosion or Implosion
  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
  7. Bush Fire, Forest Fire, Jungle Fire
  8. Impact damage of any kind, i.e., damage caused by impact of, or collision caused by, any external physical object (e.g. vehicle, falling trees, aircraft, wall )
  9. Missile testing operations
  10. Riot, Strikes, Malicious Damages
  11. Bursting or overflowing of water tanks apparatus and pipes
  12. Leakage from automatic sprinkler
  13. Theft within 7 days from the occurrence of, and proximately caused by, any of the above Insured Events
In-built Covers
  1. Additions, alterations or extensions
  2. Temporary removal of stocks
  3. Cover for Specific Contents
  4. Start-Up Expenses:
  5. Professional fees:
  6. Costs for removal of debris:
  7. Costs compelled by Municipal Regulations:
Standard Add-on
  1. Declaration Policy for Stocks: Cover for frequent fluctuations in stock/stock values on declaration basis. [Extra Premium]
  2. Floater cover : Stocks at more than one location
Sum Insured
  1. For Building, Plant and Machinery, Furniture, Fixture and Fittings and any other contents: Reinstatement Value
  2. For Stocks:
    1. For raw material : Landed Cost at Your Premises.
    2. For stock in process : Input Cost of the stock at the time of damage ,
    3. For finished stock: the Manufacturing Cost of the Finished Stock or the Contract Price of goods sold but not delivered .
  3. Bullion or unset precious stones, any curios or works of art or obsolete machinery and the like are to be covered on Agreed Value basis subject to a valuation certificate being submitted .
    1. Restoration of Sum Insured
    2. Underinsurance waiver upto 15%
    3. Reinstatement Value : This is the amount at which the Insured Property can be reinstated or replaced by a similar property, without deducting depreciation, and to the extent required to bring that 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.

It is not permissible to issue a policy covering 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.

Add-ons:

You can opt for an Add-on by choosing from the Add-ons, if any will be mentioned in the Policy Schedule and the relevant clause/s and/or endorsements will be attached to this Policy with an additional premium

Acts of terrorism  (Coverage  as per Terrorism Clause .)

Changes and Cancellation

  1. Insured can cancel the Policy Cancellation at any time during the policy period by giving notice  in writing.
  2. Insurer can cancel the policy Insurers will not cancel the Policy during the policy period except on the grounds of mis- representation, non-disclosure of material facts, fraud or non-cooperation of the insured.
Exclusions,
    • Excess of 5 % of each claim, subject to a minimum of ₹ 10,000 (Rupees Ten Thousand). This means that We will deduct 5 % of each claim, subject to a minimum of ₹ 10,000 (Rupees Ten Thousand) for each and every loss suffered by You under the terms of this policy.
    • For terrorism risk the Excess shall be as per the Clause attached with this policy.
  1. Your deliberate, wilful or intentional act or omission, or of anyone on Your behalf, or with Your connivance
  2. 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 However, any ensuing loss or damage to other insured property due to operation of an insured peril is covered.
  3. Loss, destruction or damage to the stocks in cold storage premises caused by change of temperature
  4. 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 Insured
  5. Your Premises or any Insured Building remaining continuously unoccupied for a period of more than 30 days unless You have obtained prior written approval from Us and and such approval is recorded as an endorsement on the policy
  6. War, invasion, act of foreign enemy hostilities or war-like operations (whether war is declared or not), civil war, mutiny, civil commotion amounting to a popular rising, military rising, rebellion, revolution, insurrection or military or usurped power.
  7. Ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste from combustion of nuclear fuel, or the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component that is part of it.
  8. Pollution or contamination, unless
    1. The pollution or contamination itself has resulted from an Insured Event, in which case only physical damage to the Insured Property is covered, or
    2. An Insured Event itself results from pollution or 
  9. Loss, destruction or damage to bullion or unset precious stones, any curios or works of art unless such amount is declared separately and recorded in the Policy Schedule
  10. Loss of any Insured Property which is missing or has been mislaid, or its disappearance cannot be linked to any single identifiable Insured Event
  11. Loss or damage to any Insured Property removed from Your Premises to any other place, except
    1. Machinery and equipment temporarily removed for repairs, cleaning, renovation or other similar purposes for a period not exceeding 60 days,
    2. Stock covered under in-built Cover ‘Temporary removal of stocks’. 
  12. Any reduction in market value of any Insured Property after its repair or reinstatement
  13. Loss or damage to any Insured Property or any claim which is covered by a marine policy in force at the time of loss or damage, except in excess of the limits of that policy
  14. Any consequential or indirect loss or damage of any description, i.e. losses or extra costs (financial or non-financial) that follow or are a consequence of an Insured Event, like, loss by delay, loss of income or wages or earnings, or of market, or of time, medical expenses, or any costs not covered by this policy
  15. Costs, fees or expenses for preparing any claim

N.B: The Bank shall mean the first named Financial Institution/Bank named in the policy.

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

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