Industrial All Risks Policy

 

 

Industrial All Risks Policy

 

            For a smooth running of business, all the risks must be adequately insured and covered under a

            single policy to monitor further insurance requirements. Industrial all risks policy is a package policy

            with all perils under one umbrella.

 

             Salient features of the policy are:

 

1)     This policy is available for big industrial clients, will include both manufacturing & storage facilities at all locations all over India.

 

2)     Unlike Fire policy or MBD policy, IAR policy covers all risks of physical damage except those excluded by specific exclusions.

 

3)     Section I of policy covers Material Damage and

Section II of policy covers Business Interruption Losses following Material Damage under Section I.

 

 

IAR Policy covers broadly following Perils/Covers:

 

Section I: Material Damage

 

a)     Fire policy Perils(As per SFSP policy)

b)     Earthquake, Spontaneous Combustion, Spoilage Material Damage, Leakage & Contamination, Forest Fire, Subterranean Fire etc.

c)     Theft/ burglary( Except Larceny)

d)     MBD/ Boilers Explosion/ Electronic  Equipment Insurance/ FOES

e)     Business Interruption Losses following operation of above a,b,c perils

f)      Business Interruption Losses following MBD/ Boilers Explosion

g)     Electronic  Equipment Insurance is optional, can be opted

 

      Special Features:

 

o    Under Insurance up to 15% is ignored

o    The policy covers Equipment and Machinery sent for repairs outside the premises for

period of  60 days

o    Transit risk inside the compound of an Industrial Risk stands covered

o    Usual facilities such as Escalation, Agreed bank Clause, Architects, Surveyors& Consulting Engineers Fees Clause, Designation Of Property Clause, Omission to Insured’s additions, alterations or extensions, Temporary removal of stocks, etc are available to the Insured

 

            Sum insured:

 

           Sum insured under this policy shall be the replacement / reinstatement value for buildings,

           plant &   machinery, furniture, fixtures, and fittings etc. For stocks, the Sum Insured shall be

           the market value. Declaration facility not allowed for stocks.

 

           Section II- Business interruption

 

            Cover for loss of gross profit due to

 

ü  Reduction in turnover

ü  Increase in cost of working- less any sum saved during the indemnity period, if business is interrupted or interfered as a consequence of loss/ damage/ destruction due to perils covered under section-i.

 

Business Interruption covers can be extended to include Supplier’s/ Customer’s Premises

 

           The policy Defines:

 

      Gross Profit, Turnover, Annual Turnover & Standard Turnover, Indemnity Period, Rate of Gross profit in the same way as the existing Fire LOP cover.

      It also defines uninsured working expenses

 

           IAR policy is a comprehensive cover for all business risks with attractive rates & discounts.

Disclaimer:   

Zen Insurance is an IRDAI registered broker which facilitates quick & accurate insurance broking services. We deal with only regulator approved products of insurers. We do not underwrite the products