New India Bharat Laghu Udyam Suraksha

Highlights

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.

What is the Insurance Cover under this policy?

New India Bharat Laghu Udyam Suraksha policy provides insurance cover to your property related to your business. Under this policy, we agree to pay you for the loss you suffer when unexpected events cause physical loss, damage, or destruction of buildings and structures, plant and machinery, stock, and other assets related to your business.

The Insurance Cover

1. Standard Cover:

   We cover physical loss, 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
   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)

   • 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 was 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
   Additions, alterations or 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).
   Temporary removal of stocks	Loss to stocks temporarily removed to other premises for fabrication, processing, or finishing up to 10% of value.
   Cover for Specific Contents	Cover for Money up to ₹50,000, cover for documents such as deeds, manuscripts, business books, plans, drawings, securities, etc. up to ₹50,000, cover for computer programs, information, and data up to ₹5 Lakh, and cover for personal effects of employees, directors, and visitors up to ₹15,000 per person for a maximum of 20 persons during the policy period.
   Start-Up Expenses	Start-up costs incurred by you in respect of insured risks consequent upon a loss or damage due to insured events up to ₹5 Lakhs.
   Professional fees	Reasonable fees of architects, surveyors, and consulting engineers up to 5% of the claim amount.
   Costs for Removal of Debris	Reasonable expenses for removal of debris up to 2% of the claim amount.
   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.

Standard Add-On Covers

You can purchase standard Add-on covers under the New India Bharat Laghu Udyam Suraksha Policy. You must apply for these covers and pay an additional premium.

• Declaration policy for Stocks: You can opt for a Declaration Policy to cover frequent fluctuations in stocks/stock values subject to certain conditions.
• Floater cover: You can opt for Floater cover under the Policy for physical loss or damage to Stocks at more than one location subject to certain conditions.

Exclusions (What We Do Not Pay)

• Excess of 5% of each claim, subject to a minimum of ₹10,000 (Rupees Ten Thousand). For terrorism risk, the Excess shall be as per the Clause attached with this policy.
• Your deliberate, willful or intentional act or omission, or of anyone on your behalf, or with your connivance.
• 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.
• Loss, damage or destruction of stocks in cold storage premises caused by change of temperature.
• Loss, or damage by spoilage resulting from the retardation or interruption or cessation of any process or operation caused by operation of any Insured Event.
• Your Premises or any Insured Building remaining continuously unoccupied for more than 30 days unless you have obtained prior written approval from us.
• War, invasion, act of foreign enemy hostilities, or war-like operations (whether war is declared or not).
• Ionizing radiation or contamination by radioactivity from any nuclear fuel or nuclear waste.
• Pollution or contamination, unless the pollution or contamination itself has resulted from an Insured Event.
• Loss or damage to bullion or unset precious stones, any curios, or works of art unless declared separately and recorded in the Policy Schedule.
• Loss of any Insured Property which is missing or mislaid, or its disappearance cannot be linked to any identifiable Insured Event.
• Loss or damage to any Insured Property removed from your Premises except machinery and equipment temporarily removed for repairs or stock covered under in-built covers.
• Any reduction in market value of any Insured Property after its repair or reinstatement.
• Loss or damage to any Insured Property or any claim covered by a marine policy in force at the time of loss or damage.
• Any consequential or indirect loss or damage of any description.
• Costs, fees, or expenses for preparing any claim.

Premium

The premium is the amount you pay us for this insurance. The Policy Schedule shows the amount of premium for the Policy Period and all other taxes and levies. Your policy will commence on payment of premium in full.

Note:Insurer to mention how the premium would be calculated.

Changes and Cancellation

• Changes during Policy:You can choose to make changes to the covers of this Policy, such as taking additional cover or increasing/reducing the Sum Insured. You must make a proposal or request for any change. It will be effective only after we accept your proposal and you pay the additional premium where applicable.
• Cancellation by You:You can cancel the policy at any time during the policy period by giving notice to us in writing.
• Cancellation by Us:We will not cancel the policy during the policy period except on the grounds of misrepresentation, non-disclosure of material facts, fraud, or non-cooperation of the insured.
• Policy ends automatically:
  • If insured property is lost, destroyed, or stolen, or its cost of repair is more than the Sum Insured, and we have paid you the entire Sum Insured for that property and you have decided not to restore the sum.
  • Change of ownership of insured property.
  • Sale of insured property.

Underinsurance

Underinsurance waiver up to 15%: This is a special feature of New India Bharat Laghu Udyam Suraksha policy, where we waive underinsurance up to 15%.

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