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

Insurance in a Time of Conflict: The Truth About War Risk Coverage

  In the wake of the recent confrontation between India and Pakistan through Operation Sindoor, a question in the minds of those with an insurance policy was if their policy will cover war-related damages. Our clients were no exception; we got queries on insurance coverage for wars during this period. War seemed a remote possibility until Operation Sindoor, but this operation made everyone believe that war was a reality and prompted the exploration of insurance coverage for such an incident.  In this blog, we will explore the coverage for war in insurance policies. War Coverage in Insurance Policies Most insurance policies—whether for property, auto, life, health, or travel—include a war exclusion clause . This clause denies coverage for losses or damages resulting directly or indirectly from war, invasion, civil unrest, rebellion, insurrection, or military action. Importantly, this exclusion generally applies even if war is not officially declared. Declared Wars: When...
Post a Comment
Read more

Territory and Jurisdiction in Insurance Policies

  On scrutinizing a policy one can get an understanding of the cover offered, period of insurance and other aspects of the policy are covered.   On close examination of the policy the territory and jurisdiction are mentioned as India. Till the recent past, these limits were hardly significant in an insurance claim. However, the significance of the terms holds relevance in the global scenario today. Let us look at these aspects in more detail and why they have gained significance today. What is territory limit in an insurance policy? Territory limit is the area where the policy will provide cover to the policyholder. Insurance policies are generally issued with India as the territory. This means that the country of operation for business, residence, travel, transits and other insurance covers is India. Suppose someone who is travelling outside India requires a cover for extended territory then he has to place the request with the insurance company and they may consider ...
Post a Comment
Read more

Cyber Insurance for Data Breach

      In today’s digital world, data is one of the most valuable assets; with that value comes increased risk of exploitation through cyberattacks and unauthorized data breaches. Data breaches have become alarmingly common across industries, with organizations from global tech giants to local banks facing attacks that expose sensitive personal, financial, or health information. These breaches often occur due to weak cybersecurity measures, phishing scams, insider leaks, or third-party vendor compromises. While some attacks are outright hacks, others are silent leaks that go unnoticed until the data is already out.   What is a data breach?   A data breach occurs when an unauthorized party or individual gets access to confidential or classified information from systems without consent. The data breach can provide access to personal information, financial data, business secrets, intellectual property or even classified information.    Data...
Post a Comment
Read more