Bharat Laghu Udyam Suraksha Policy

Can I cover additions and alterations to my property during the policy period under the Bharat Laghu Udyam Suraksha Insurance Policy?

Yes, up to 15% of the sum insured for that item

Does the Bharat Laghu Udyam Suraksha Insurance Policy cover stocks located at multiple locations?

Yes, through a floater cover

Are temporary removals of stocks covered under the Bharat Laghu Udyam Suraksha Insurance Policy?

Yes, up to 10% of the value

What specific contents are covered under the Bharat Laghu Udyam Suraksha Insurance Policy?

Money up to ₹50,000, documents up to ₹50,000, computer data up to ₹5 Lakh, personal effects up to ₹15,000 per person

Are start-up expenses covered under the Bharat Laghu Udyam Suraksha Insurance Policy?

Yes, up to ₹5 Lakh

Does the Bharat Laghu Udyam Suraksha Insurance Policy cover professional fees?

Yes, up to 5% of the claim amount

Does the Bharat Laghu Udyam Suraksha Insurance Policy cover the removal of debris?

Yes, up to 2% of the claim amount

Are costs compelled by municipal regulations covered under the Bharat Laghu Udyam Suraksha Insurance Policy?

Yes, additional cost of reconstruction to comply with regulations

What add-ons can I purchase with the Bharat Laghu Udyam Suraksha Insurance Policy?

You can purchase the following add-ons:

• Floater Cover: Cover for stocks at multiple locations under one Sum Insured.
• Declaration Policy for Stocks: Cover for frequent fluctuations in stock/stock values on a declaration basis.

How does the Bharat Laghu Udyam Suraksha Insurance Policy help in case of loss or damage?

The policy helps by providing financial coverage for:

• Physical loss, damage, or destruction of insured property due to unforeseen events.
• Costs associated with repairs, reinstatement, or reconstruction of insured property.

Does the Bharat Laghu Udyam Suraksha Insurance Policy cover the entire claim?

The policy covers your claim if it is admissible under the terms and conditions. There is a provision of ‘Excess’ which means you must bear a portion of the claim (the higher of ₹10,000 or 5% of the claim amount). The insurer pays the remaining amount of the admissible claim.

Which unexpected events are covered under the Bharat Laghu Udyam Suraksha Insurance Policy?

Covered events include:

• Fire
• Explosion or Implosion
• Lightning
• Earthquake, volcanic eruption, or other convulsions of nature
• Storm, cyclone, typhoon, tempest, hurricane, tornado, tsunami, flood, and inundation
• Subsidence of the land, landslide, rockslide
• Bush fire, forest fire, jungle fire
• Impact damage
• Missile testing operations
• Riot, strikes, malicious damage
• Acts of terrorism
• Bursting or overflowing of water tanks, apparatus, and pipes
• Leakage from automatic sprinkler installations
• Theft within 7 days from the occurrence of and proximately caused by any of the insured events

What events are not covered under the Bharat Laghu Udyam Suraksha Insurance Policy?

Not covered events include:

• Deliberate, wilful, or intentional acts
• Losses from temperature changes in cold storage
• War, invasion, war-like operations
• Ionising radiation
• Pollution or contamination
• Property that is missing or mislaid
• Consequential or indirect loss or damage
• Costs for claim preparation
• Unoccupied premises for more than 30 days without notice
• Unspecified bullion or unset precious stones, curios, or works of art
• Damage to electrical/electronic machines from internal causes

For which property can I take the Bharat Laghu Udyam Suraksha Insurance Policy?

The policy covers:

• Buildings with basements, fittings, fixtures, garages, towers, security sheds, internal roads, lifts, air conditioning systems, security systems, electric installations, and fire sprinkler systems
• Plant and machinery, spares, and accessories
• Stock of goods or merchandise including raw material, semi-finished goods, stock in process, finished goods, and packing material
• Other items like furniture, office and electronic equipment, canteen and kitchen equipment, and computers

Can I cover curios and works of art under the Bharat Laghu Udyam Suraksha Insurance Policy?

Curios and works of art are excluded from the policy unless specifically declared and included in the policy schedule.

Are machinery and equipment temporarily removed for repairs covered under the Bharat Laghu Udyam Suraksha Insurance Policy?

Yes, machinery and equipment temporarily removed for repairs, cleaning, or similar purposes are covered for up to 60 days. Coverage beyond this period requires contacting the insurer with details.

Who is eligible to purchase the Bharat Laghu Udyam Suraksha Insurance Policy?

You can purchase this policy if you are the owner, tenant, lessee, purchaser, or trustee of the property. The policy is applicable if the value of insurable assets at any one location is more than ₹5 Crore but not more than ₹50 Crore at the policy commencement date.

What kind of commercial enterprise is the Bharat Laghu Udyam Suraksha Insurance Policy meant for?

This policy is applicable for:

• Offices, hotels, shops
• Industrial/manufacturing risks
• Utilities outside industrial/manufacturing compounds
• Storage risks outside industrial/manufacturing compounds
• Tank farms/gas holders outside industrial/manufacturing compounds

What amount am I entitled to receive if there is a covered loss under the Bharat Laghu Udyam Suraksha Insurance Policy?

The amount payable depends on the type of loss:

• Partial loss: Cost of repairs for buildings, plant, machinery, and other assets; extent of loss for stock
• Total loss: Reinstatement value for buildings and plant machinery; market value (reinstatement value less depreciation) for other assets

What is the basis of Sum Insured in the Bharat Laghu Udyam Suraksha Insurance Policy?

The sum insured is based on:

• Reinstatement value for buildings, plant, machinery, furniture, fixtures, and fittings
• Landed cost for raw materials
• Input cost for stock in process
• Manufacturing cost or contract price for finished goods
• Agreed value for items like bullion, unset precious stones, and curios

What is Reinstatement Value in the Bharat Laghu Udyam Suraksha Insurance Policy?

Reinstatement value is the amount required to reinstate or replace the insured property to a condition similar to, but not superior to, its condition when new, without deducting depreciation.

Does the Bharat Laghu Udyam Suraksha Insurance Policy cover all losses caused by the insured events?

The policy covers losses caused by insured events, subject to exclusions such as deliberate acts, war, ionising radiation, pollution, and contamination.

Can items like jewellery, ornaments, and artworks be covered by the Bharat Laghu Udyam Suraksha Insurance Policy?

These items are excluded unless specifically declared and included in the policy schedule.

I have taken an insurance policy covering my building. My bank which has financed my business has also taken insurance separately. Both policies are in force covering the same property. What happens in the event of a claim?

In the event of a claim, both policies will contribute to the settlement based on their respective sums insured and terms and conditions.

What is the relevance of salvage under the Bharat Laghu Udyam Suraksha Insurance Policy?

Salvage refers to the remaining value of damaged property. The insurer may deduct the salvage value from the claim amount.

What is the condition of Average in the Bharat Laghu Udyam Suraksha Insurance Policy?

The condition of Average applies if the sum insured is less than the actual value of the property. The claim amount is reduced proportionately based on the underinsurance.

What is a deductible in the Bharat Laghu Udyam Suraksha Insurance Policy?

A deductible is the portion of the claim amount that the insured must bear. It is the higher of ₹10,000 or 5% of the claim amount.

What is depreciation in the context of the Bharat Laghu Udyam Suraksha Insurance Policy?

Depreciation refers to the reduction in the value of an asset over time due to wear and tear. In claims, the insurer may deduct depreciation from the claim amount.

Will Bharat Laghu Udyam Suraksha Insurance Policy cover premises on rent?

Yes, the policy covers rented premises if the insured is responsible for the property and liable for taking insurance.

What is a valued policy in Bharat Laghu Udyam Suraksha Insurance Policy?

A valued policy is one where the insurer and insured agree on the value of the property at the time of policy issuance. The agreed value is paid in the event of a total loss.

What is kutcha construction in Bharat Laghu Udyam Suraksha Insurance Policy?

Kutcha construction refers to buildings made of temporary materials like thatch, bamboo, or wood, which are not covered under the policy unless specifically declared.

Can a single policy of such type be taken for more than one location?

Yes, a single policy can cover multiple locations through a floater cover.

What is the meaning of Occupancy in Bharat Laghu Udyam Suraksha Insurance Policy?

Occupancy refers to the use of the insured premises. Changes in occupancy or use must be notified to the insurer.