Fire Insurance
The importance of having a fire insurance policy cannot be over emphasized. Let’s
face it; no one can accurately predict when something tragic or unavoidable will
happen to one’s property. A major fire is a disaster for a business and many companies
never recover. Fire Insurance covers your office's structure and contents not only
against the risk of fire but also other perils like lightning, flood, storm, earthquake,
riots etc.
Till recently, the fire insurance was governed by Tariff Advisory Committee which
was responsible for fixing the rates for different types of risks. But from Jan
1, 2008, the fire business was detariffed and now the premium rates differ from
insurer to insurer. It is one of the common policies taken by most business houses.
An aspect to be reviewed here is the adequacy of sum insured proposed for insurance.
Burglary Insurance
It’s not something you want to think about, but what would happen if a burglar cleans
out your inventory? That’s where the burglary insurance policy chips in. This policy
covers property contained in business premises, stocks owned or held in trust against
the risk of burglary. It also covers cash, valuables, securities kept in a locked
safe or cash box in locked steel cupboard on specific request..
Machinery Breakdown (MBD) Insurance
Consider the unexpected occurrences that can damage machinery and cause expensive
production delays or interrupt cash flow. This policy covers the breakdown of machinery
due to various perils. This policy is indispensable for businesses that operate
using a large number of machines.
The breakdown of a single machine may bring the operations of the factory to a standstill.
This policy covers monetary costs involved in restoration or replacement of machines.
Electronic Equipment Insurance (EEI)
Most of the corporates today depend on computers, laptops and other electronic devices
for their day-to-day functioning. But have you ever thought about how quickly could
you get back on your feet if something happened to the equipments you rely on to
do business? The Electronic Equipments Insurance policy protects your equipment
like computers, communication systems, testing devices and other electronic equipment
from any risk while such equipment is at work, at rest or during maintenance operations.
The policy also covers the additional expenditure that you will have to incur by
way of hiring substitute systems.
Money Insurance
Almost all businesses handle cash, cheques, and bankers’ drafts, making this form
of insurance essential. Money Insurance
- Covers money while in transit in the personal custody of the insured or his employee,
- Covers money in premises during business hours,
- Covers money in a safe or strong room outside business hours.
All Risks Insurance
This policy covers valuables like Jewellery, ornaments, paintings, work of art,
and similar artifacts of sentimental values. The policy provides cover on a wide
basis and covers loss or damage due to fire, riot & strike, burglary, house breaking,
theft and accidental loss or damage. Cover is not freely granted on account of its
vulnerability to losses and moral hazard.
Office Package Policy
We recognise that your office is more than a place to put desks and equipment -
it's at the heart of your business. Similarly, an office package policy is the heart
of a commercial insurance program. As the name suggests, it is a comprehensive package
of different insurance policies that provide flexibility and cover for various contingencies.
Opting for this will save you the hassle of arranging different policies for fire,
burglary, machinery breakdown etc. It will also give you better control in managing
your insurance portfolio.
Contractor’s Plant & Machinery (CPM) Insurance
This is an All Risk policy covering the plant and machinery of a contractor at specified
work sites. The contractor’s machinery is generally used under rough conditions
and so is more vulnerable to damage. Breakdown of such machinery can jeopardize
the completion of a project and put many other things at stake.
The CPM Policy is designed for all such situations and will assist in protecting
you against the sudden and unforeseen physical loss or damage to your plant and
machinery. It covers all kinds of construction equipment like compressors, heavy
duty cranes, boring machines, bulldozers, pipe jacking, and hauling equipment, excavators,
loaders, road rollers etc.
Contractor’s All Risk Insurance
Construction is a high-risk industry. Accidents, including personal injuries and
property damage, happen all the time, and these accidents may wreck havoc on your
plans, schedules and costs even to the point of making you insolvent. So, you need
an umbrella cover that will protect you during such times to ensure that you complete
your project on time.
A CAR policy covers the physical damage to materials to be used for the project
– whether in transit, in storage or forming part of the contract works. There is
also an ancillary cover up to moderate limits for third party liabilities. It is
a main feature of the CAR policy to cover those who have an immediate material interest
in the project. That includes the owner, the contractor and usually all sub contractors.
The length of the period of insurance must correspond to the contract works.
Erection All Risk Insurance
The basic concept of Erection All Risk insurance is to offer a comprehensive protection
against ‘All Risks’ involved in erection. This is now an indispensable and integral
part of any project – be it Greenfield or Expansion. Erection All Risk is a comprehensive
insurance policy designed to cover all sorts of contingencies arising right from
the moment the materials are unloaded at the project site.
The cover continues during the entire period until the project is tested, commissioned
and handed over. Erection All Risks Insurance is also known as Storage cum Erection
Insurance. The scope of cover is on all risk basis. The policy has two sections
namely Section I – Material Damage and Section II – Third Party Liability. Cross
Liability between the various parties named as insured’s under the policy can also
be insured.
Industrial All Risk Insurance
This is a comprehensive policy to cover damage to your assets from all unforeseen
circumstances except for those specified “Exclusions”. There are two Sections in
the Policy : Section I - Material Damage and Section II - Business Interruption.
The policy can be opted for by large as well as mid-size corporates.
Motor Insurance
Under the provisions of Vehicles Act, all the vehicles which are plying in public
places in India should have an insurance policy at least to cover third party liability.
Hence, it is obligatory to get the vehicle insured.There are two types of policies
available for motor vehicles; one is the “Package policy” and the other one is the
“Liability Only” policy. “Liability only” policy covers only the inter-alia liability
of the vehicle owner for loss or damage to life or property of the third parties
whereas the package policy covers in addition to third party liability, loss or
damage to the vehicle itself by way of accident, theft, etc and specified perils.
For the purpose of insurance, motor vehicles are divided into three classes: Private
cars, Motor Cycles and Commercial Vehicles.