Minor accidents and breakdowns (or theft) can be a cause of major damage to industries.
Electronic equipment and machinery are expensive and often involve large sums invested
in and across vast areas.
This makes for high risks in terms of material damage as well as business loss.
In such a scenario the all encompassing cover provided by HDFC ERGO's Industrial
All Risk Insurance, gives your industry the reassurance it needs.
All industrial risks (other than risks rateable under the Petrochemical Tariff)
with an overall Sum Insured of Rs. 100 Crores and above in one or more locations
in India shall be eligible for the Industrial All Risk Policy.
The policy covers all risks/perils other than those which are specifically excluded.
The cover in its widest form, referred to as “all risk” includes the following perils/covers:
- Section I (Material Damage)
- Fire and all special perils
- Burglary
- Machinery Breakdown/Boiler Explosion/Electronic Equipment Insurance
- Section II (Business Interruption)
- FLOP (Fire Loss of Profit): Business interruption due to fire and all special perils
- MLOP (Machinery Loss of Profit): Business interruption due to machinery breakdown
- MLOP is an optional cover.
- Architects’, surveyors’ and consulting engineers’ fees
- Omissions to insure additions/alterations
- Temporary removal of stock
- Debris removal
- Escalation
- Earthquake
- Act of terrorism
- Other extensions are available under relevant sections
- The Sum Insured for Section I (Material Damage) relating to buildings, machinery,
furniture, fixtures, fittings and electrical installations shall be on Reinstatement
Value basis only, while stocks shall be covered on Market Value basis
- The Sum Insured for machinery breakdown risk should be the same as the Sum Insured
of plant and machinery declared under fire, less the value towards piping and cabling
- The Sum Insured for Section II (Business Interruption) relating to loss of profit
shall be the Annual Gross Profit
The premium will depend on the type of cover opted, claims experience, fire protection
appliances and deductible opted under the policy.
The policy is subject to a compulsory deductible as under:
- Material Damage Claims: 5% of the claim amount subject to a minimum
of Rs. 5 Lakhs and a maximum of Rs. 50 Lakhs
- Business Interruption Claims: 3 days gross profit subject to a
minimum of Rs. 5 Lakhs and a maximum of Rs. 50 Lakhs
- Causes excluded
- Inherent vice, normal wear and tear
- Collapse or cracking of building
- Faulty or defective design, material or workmanship
- Pollution, contamination
- Inventory losses
- Fraud, larceny
- Interruption of the water supply, gas, electricity or fuel systems or failure of
the effluent disposal systems, etc
- Property excluded
- Money, cheques, stamps, bonds, credit cards, bullion, precious stones, works of
art, unless specifically mentioned in the policy
- Goods held in trust or commission, business books, computer records, manuscripts,
unless specifically mentioned in the policy
- Vehicles licensed for road use
- Property in transit other than within the premises specified in the policy
- Livestock, growing crops or trees
|