Industrial All Risk Policy

Yes, many insurers offer optional extensions to cover terrorism risks.

The premium is based on factors such as the sum insured, type of industry, risk exposure, and claims history.

All industrial risks with an overall sum insured of Rs. 50 crores and above in one or more locations in India are eligible for an INDUSTRIAL ALL RISK policy.

For buildings, machinery, furniture, fixtures, fittings, and electrical installations, the sum insured is on a reinstatement value basis, while stocks are covered on a market value basis. The policy is subject to the condition of average, ignoring underinsurance if it does not exceed 15%.

The sum insured is determined based on the reinstatement value of the property. This means estimating the cost to replace or restore the property to its original condition before the loss, without considering depreciation.

The cost depends on factors like the sum insured, chosen deductibles, additional covers or extensions, nature of the business, location, risk exposure, and claims history.

Yes, you can request cancellation mid-term. If canceled by the insured, the premium refund will be calculated on a short period rate, proportionate to the unexpired policy period.

The insured must notify the insurer immediately, provide a detailed claim within 15 days, take reasonable steps to minimize loss, and preserve evidence for inspection.

No, the claim amount is based on actual loss or damage. Over-insuring will not result in a higher claim payout; the insurer will pay only the reinstatement value.

Generally, these items are not covered unless specifically mentioned and endorsed. They usually require separate or additional coverage.

In case of a claim, the loss will be shared proportionately by both policies under the principle of “contribution” to prevent overcompensation.

Salvage refers to the remaining value of damaged property that can be recovered and sold to reduce the claim amount. The insurer may take possession of the salvage and deduct its value from the payout.

The condition of Average is a clause in the INSURANCE policy that applies when the sum insured is less than the actual value of the insured property. If Under insurane is found at the time of a claim, the insured will bear a proportionate share of the loss. This means the claim payout will be reduced in proportion to the Under insurane.

A deductible is the amount that the insured must bear out of pocket before the insurer pays the claim. It is a specified amount or percentage of the claim that is subtracted from the total claim payout. Deductibles are used to reduce the number of small claims and encourage the insured to take preventive measures to minimize losses.

Depreciation in INSURANCE refers to the reduction in the value of an asset over time due to wear and tear, age, and usage. When calculating the claim amount, depreciation is considered to determine the current value of the damaged property. However, in an INDUSTRIAL ALL RISK policy based on reinstatement value, depreciation is not deducted, and the property is restored to its original condition.

Typically, Industrial All Risk (INDUSTRIAL ALL RISK) INSURANCE policies are annual policies. However, some insurers may offer short-term policies for less than one year, depending on the specific needs and circumstances of the insured. It is best to check with the insurer for available options and terms.

Yes, INDUSTRIAL ALL RISK INSURANCE can cover premises that are rented. The policy can be tailored to include coverage for the contents, machinery, and equipment within the rented premises, as well as any improvements or alterations made by the tenant.

Kutcha construction refers to buildings made with temporary or non-permanent materials such as mud, thatch, bamboo, or other similar materials. These structures are considered to be at higher risk for damage and may have specific exclusions or higher premiums in an INDUSTRIAL ALL RISK policy.

An escalation clause in an INDUSTRIAL ALL RISK INSURANCE policy automatically increases the sum insured to cover inflation and cost increases over the policy period. This ensures that the insured property remains adequately covered despite rising construction and material costs.

Occupancy in INDUSTRIAL ALL RISK INSURANCE refers to the use or purpose of the insured building or premises. It indicates how the building is being utilized, such as for manufacturing, storage, office space, etc. The type of occupancy affects the risk profile and premium of the policy.

Yes, premises with adequate fire fighting arrangements such as fire alarms, sprinklers, and extinguishers may receive discounts on the INDUSTRIAL ALL RISK INSURANCE premium. These safety measures reduce the risk of fire damage and are incentivized by insurers.

Impact damage in INDUSTRIAL ALL RISK INSURANCE refers to physical damage caused by external objects colliding with the insured property. Examples include damage from vehicles, falling trees, or machinery.

An existing INDUSTRIAL ALL RISK INSURANCE policy ceases to be effective if the insured building becomes unoccupied for more than 30 days without obtaining an endorsement from the insurer. Other circumstances include non-payment of premiums, misrepresentation, or non-disclosure of material facts.

To reduce the premium cost for INDUSTRIAL ALL RISK INSURANCE, the insured can install fire fighting equipment, choose higher deductibles, ensure adequate security measures, and maintain a good claims history. Additionally, regular maintenance and risk management practices can help in obtaining premium discounts.

Yes, short circuit causing fire or explosion is covered under the INDUSTRIAL ALL RISK INSURANCE policy. However, the policy may specify certain conditions or exclusions related to electrical installations.

After experiencing an INDUSTRIAL ALL RISK INSURANCE peril, the insured should immediately notify the insurer, take steps to minimize further damage, secure the property, preserve evidence of the loss, and submit a detailed claim with supporting documentation within the specified time frame.

No, cash is not covered under an INDUSTRIAL ALL RISK INSURANCE policy. Items such as money, cheques, and securities are generally excluded unless specifically mentioned and covered by an endorsement.

No, land is not covered under an INDUSTRIAL ALL RISK INSURANCE policy. The policy typically covers buildings, machinery, equipment, and contents, but not the land itself.

No, growing crops are not covered under INDUSTRIAL ALL RISK INSURANCE. Crops are considered agricultural products and require specific agricultural INSURANCE coverage.

No, jewellery is generally excluded from coverage under an INDUSTRIAL ALL RISK INSURANCE policy unless specifically mentioned and included by an endorsement.

Yes, expenses incurred to control a fire and the resultant damages are covered under an INDUSTRIAL ALL RISK INSURANCE policy. This includes costs for firefighting, mitigating further damage, and cleanup after the fire.

The premium for INDUSTRIAL ALL RISK INSURANCE is calculated based on the sum insured, the nature and use of the property, location, risk exposure, claims history, chosen deductibles, and any additional covers or endorsements added to the policy.

Yes, coverage for additional perils like earthquakes or floods can be included as add-ons to the INDUSTRIAL ALL RISK INSURANCE policy. These add-ons provide protection against specific risks not covered under the standard policy.

No, personal belongings are not typically covered under an INDUSTRIAL ALL RISK INSURANCE policy. The policy is designed to cover industrial and commercial property, machinery, and business interruption losses.

Common reasons for denying INDUSTRIAL ALL RISK INSURANCE claims include non-disclosure or misrepresentation of material facts, underinsurance, exclusions specified in the policy, failure to comply with policy conditions, and fraudulent claims.

The sum insured is determined based on the reinstatement value of the property. This means estimating the cost to replace or restore the property to its original condition before the loss, without considering depreciation. This ensures that in the event of a loss, the insured can rebuild or replace the damaged property with new materials.

The cost of an Industrial All Risk (INDUSTRIAL ALL RISK) INSURANCE policy depends on several factors, including the sum insured, the chosen deductibles, and any additional covers or extensions added to the policy. Other factors such as the nature of the business, location, risk exposure, and the insured’s claims history also affect the premium.

Yes, you can request the cancellation of the policy mid-term. If the policy is cancelled by the insured, the premium refund will be calculated based on the short period rate, which means the refund amount will be proportionate to the unexpired period of the policy.

In the event of a loss, the insured must notify the insurer immediately and provide a detailed written claim within 15 days. The insured is also obligated to take all reasonable steps to minimize the loss and protect the insured property from further damage. Any evidence of the damage should be preserved for inspection by the insurer.

No, the claim amount is not based on the insured value but on the actual loss or damage incurred. Over-insuring the property will not result in a higher claim payout; the insurer will only pay for the actual cost to repair or replace the damaged property up to its reinstatement value.

Generally, items like jewellery, ornaments, and art works are not covered under a standard Industrial All Risk INSURANCE policy unless they are specifically mentioned and covered by an endorsement. These items usually require separate or additional coverage due to their high value and unique nature.

If both your INSURANCE policy and your bank’s INSURANCE policy cover the same property, in the event of a claim, the loss will be shared proportionately by both policies. This principle is known as “contribution” and ensures that the insured does not receive more than the actual loss amount from multiple insurers.

Salvage is the remaining value of damaged property that can be recovered and sold to reduce the overall loss amount. The relevance of salvage in INSURANCE is that it helps to mitigate the loss by offsetting the cost of the claim. The insurer may take possession of the salvage and deduct its value from the claim payout.