Industrial All Risk Insurance

Fire and Allied Policy is a named perils policy which covers for the perils enumerated in the policy and nothing beyond that. However, industrial risks are varied and complex in nature, with many risks that may go uninsured in the standard fire policy. Industry All Risk policy is an all risk policy with specified exclusions as mentioned. It is highly suitable to risks with sum insureds greater than INR 100 Crores, though industrial units less than INR 100 Crore can also choose to opt for this policy. The policy has two sections namely; Material Damage and Business Interruption.
  • Material Damage section covers the risks of:

      • Fire & All special perils
      • Burglary
      • Machinery Breakdown
      • Boiler Explosion
      • Electronic Equipment Insurance

While Business Interruption due to material damage by Fire & Special Perils is compulsory; an Industry which is heavily dependent on few machineries or electronic equipments, has an option to cover business interruption due to breakdown of machines/equipments. The policy is on Reinstatement basis only except for Stocks which can be covered on Market Value basis. The policy additionally covers for transit risks within the Industrial unit and there is no deduction on account of depreciation for machinery breakdown losses.

  • Following extensions can be opted for under the policy:

      • Architect’s, surveyor’s and consulting engineer’s fees
      • Omissions to insure additions/alterations
      • Debris Removal Expenses
      • Escalations
      • Goods held in trust cover
      • Temporary removal of stock Clause
      • Earthquake & Tsunami
      • Act of terrorism
      • Auditors Fees
  • The following are major exclusions under the policy:

      • War, Invasion, mutiny, rebellion, revolution and allied perils.
      • Damage direct or indirect by nuclear weapons material and contamination by radioactivity
      • Damage to the property caused by faulty or defective design materials or workmanship.
      • Inherent vice, wear and tear.
      • Interruption of water supply, gas, electricity or fuel systems.
      • Collapse or cracking of the building.
      • Willful act or gross negligence.
      • Fraud and Larceny
      • It does not cover property like money, cheques, securities, computer records, vehicles licensed for road use, livestock, crops and trees.

Disclaimer: The above is a broad indication. The actual available are as described in the policy wordings of the insurance company and will be subject to the policy terms, conditions and exclusions.