Deterioration of Stocks (Potatoes)

Stocks are essential part of day today business activities. Due to intrinsic nature of Potatoes, it needs specific attention in storage.

HDFC’s DOS policy protects against deterioration, contamination or putrefaction (rotting) of perishable stock as a result of the unexpected rise in temperature brought about by the accidental failure or breakdown of the refrigeration plant. Existence of Machinery Breakdown insurance is prerequisite.

  • DOS provide cover for loss or damage caused by deterioration or putrefaction or contamination of stock described in policy caused by accident causing rise in temperature in the Refrigeration Chambers subject to other terms and conditions of Policy.
  • Declaration Policy for 12 Months
  • Accidental failure of Public electricity Supply
  • The sum insured under this policy shall be
    • For Annual Policies:-
      The value of the stocks obtained by multiplying the full storage capacity of the Cold storage by the average price of the Potatoes at the time of loading as determined by the insured with the concurrence of the Company at the time this Insurance has come into effect. This price shall include storage charges for the whole season.
    • For Policies Issued for periods less than 12 months:-
      Value of stocks obtained by multiplying the full storage capacity of the maximum number of chambers that are likely to be used during the entire period by the average price of the potatoes at the time of loading as determined by the Insured with the concurrence of the Company at the time this Insurance has come into effect.
  • The price shall include storage charges for the whole season.
  • Note:- For this purpose storage capacity of the cold storage shall be determined on the basis that ten quintals of potatoes can be stored for 100 cubic feet of space inside the chamber.
  • Premium depending upon
    • Sum Insured
  • As per Policy and Nature of loss
  • The policy does not cover any losses or damage due to
  • Rise or fall in temperature caused by stoppage of any section or sections of the Refrigeration Plant for less than 24 hours following an accident to the Refrigeration Plant & Machinery specified in Policy and covered by concurrent Machinery Insurance policy.
  • Rise or fall in temperature caused by failure of electric supply.
  • Rise or fall in temperature due to stoppage of any section or sections of the Refrigeration Plant for repairs, maintenance, overhauling or for replacement of parts due to wear and tear of the plant and equipments or failure of any part/s requiring periodical renewal and operation of fuses and safety devices. However, this exception will not apply for repairs or replacement necessitated by operation of an Insured peril.
  • Overloading of the Refrigeration Plant and Equipments beyond its maximum rated capacity.
  • Improper storage, insufficient circulation of air/non-uniformity of temperature for whatsoever reasons.
  • Packing materials
  • Collapse of rack structure/storage platforms due to uneven loading or any other reasons.
  • War, invasion, act of foreign enemy
  • Nuclear reaction, nuclear radiation or radioactive contamination
  • Willful act of willful negligence
  • Fire, Lightning, Extinguishment of a fire or subsequent demolition, collapse of building, Flood, Inundation, Earthquake, Subsidence, Landslide, Rockslide, Storm, Tempest, Hurricane, Typhoon, Cyclone or other natural catastrophe.
  • Consequential loss or damage or liability of any nature whatsoever.
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