Property and Misc Insurance

Industrial All Risk

This is a Comprehensive Package Policy which provides cover against unforeseen circumstances including accidental damage to the property, which a large industry may face during its operation.

Minor accidents and breakdowns (or theft) may lead to major shutdown or huge expenses. Electronic equipment and machineries are expensive and often involve large sums invested in and across vast areas. Any major shutdown may lead to potential loss of Market Share and this would have long term percussions.

In such a scenario the all encompassing cover provided by HDFC ERGO's Industrial All Risk Insurance, gives your industry the reassurance it needs. A timely help by paying claim would help to resume business at the earliest.

  • 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 Clause
  • Debris Removal Clause
  • Escalation Clause
  • 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) based on Annual Gross Profit and Indemnity Period selected.
  • Indemnity Period i.e. the maximum period during which the business may remain interrupted, can be chosen by the insured depending on the activities involved.
  • The premium will depend on the type of cover opted, claims experience, risk exposures, fire protection systems available, maintenance practices and deductible opted under the policy.
  • The policy is subject to a compulsory deductible and will depend upon the sum insured.

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

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