Skip to main content

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comments

Post a Comment

Popular posts from this blog

Prior and Pending Litigation in Professional Indemnity Policy

  The prior and pending litigation exclusion in liability policies is a clause designed to exclude coverage for claims related to legal disputes or circumstances already known, pending, or in progress before the policy's effective date. It’s an important exclusion because it limits the insurer’s liability for events that occurred before the policy began. Here are more details about this exclusion. Purpose of the Prior and Pending Litigation Exclusion Insurers include this exclusion to avoid covering claims or disputes that were known or existed before the policy started. It ensures that the underlying policy , Directors & Officers (DnO), Professional Indemnity (PI) policy, etc., only covers new claims that arise from professional errors, omissions, or negligence occurring during the policy period and not pre-existing or ongoing legal matters. What the Exclusion Covers Prior Litigation : Any lawsuit, claim, investigation, or l...
Post a Comment
Read more

Mitigation Costs in Professional Liability Policies

  Professional Liability Insurance in India, more commonly referred to as Errors & Omissions (E&O) insurance in the case of businesses, provides the business with insurance coverage against claims of negligence, error, or omission in the services rendered by the business under insurance. In this policy, one of the features includes mitigation cost coverage. Mitigation costs are sums of money that an Insured pays to avoid or lessen the possibility of a claim arising. For example, if a business finds an error in its work that may give rise to a potential liability claim, it may incur expenses to correct such error before it generates a claim. These costs will be incurred in trying to reduce the potential damage or liability and, therefore, may be covered under a professional liability insurance policy. However for mitigation cost section claim to trigger there needs to be a claim payable under the policy. Once the claim is determined to be payable under the policy, the miti...
Post a Comment
Read more

Third Party claims under Motor Insurance

                                  There are two sections within a comprehensive motor policy -o wn damage section and third-party section (3 rd Part Section). Own Damage section is voluntary insurance based on the Insured Declared Value (IDV) opted by the insured while 3 rd Party section is compulsory under the provisions of the Motor Vehicles Act 1988 (MV Act).   While own damage section takes care of damage to the motor vehicle due to accidents, Act of God perils, etc., the third-party section covers third party property damages and bodily injuries.             Details of third-party cover in motor insurance : Third party cover : Third-party insurance, is called as ‘Act Only’ insurance as it is a statutory requirement for all vehicle owners as per the Motor Vehicle Act. This policy covers accident, loss of life and damage to the...
Post a Comment
Read more