Industrial All Risk Insurance

Brief Description

This policy is a Comprehensive Package Policy which covers almost all risks and perils, which a large industry may face during its operation. This policy covers Buildings, Machinery, Furniture, Fixtures, Fitting & electrical installations on Reinstatement value, while the stock is covered on market value basis. Underinsurance on each item of the schedule will be ignored if it does not exceed 15% of sum insured. Policy also covers equipments and machinery sent for repairs outside the premises for a period of 60 days. Transit risk inside the compound of an industry is also covered.

Advantage of Industrial All Risk policy
  • Single document - Replacing several existing policies
  • All risk basis - Offers most comprehensive coverage
  • Machinery Breakdown Covered – All Machinery included
  • Free cover – Burglary
  • Transit risks within the compound
  • Fire Loss of Profit Covered
  • Excess – 5% of claim amount subject to Rs. 5 Lac - From 1st April this minimum excess will become 25 Lac
Add on covers opted in our IAR quotation
  • Debris Removal Cover
  • Spontaneous Combustion
  • Start up Expenses
  • Molten Metal Damage
  • Omission to Insure additions, alteration or extensions
  • Impact Damage due to Insured’s own Rail/Road Vehicles, Forklifts, Cranes, Stackers and the like and articles dropped there from.
  • Architects, Surveyors and Consulting Engineers Fees ( in excess of 3% claim amount)
Covered Risks

Bursting and overflowing of water tanks, apparatus and pipes, Deterioration of stocks due to power failure following damage to premises of public power stations and electric service feeders (for Cold Storages), Forest fire, Leakage and Contamination cover, Spoilage Material Damage cover, Sprinkler leakage cover, Subterranean fire, Spontaneous and Landslide cover, Burglary (other than Larceny), Machinery Breakdown/Boiler explosion/Electronic Equipment, Business Interruption following fire, Business Interruption following Machinery Breakdown.

Major Exclusions

Damage to the property caused by faulty or defective design materials or workmanship, inherent vice, wear and tear etc. Interruption of water supply, gas, electricity or fuel systems. Collapse or cracking of the building. Willful act or gross negligence. War, Invasion, mutiny, rebellion, revolution etc. Damage direct or indirect by nuclear weapons material and contamination by radioactivity.

Limitations of Standard Fire Policy
  • Losses excluded
  • Electrical fire
  • Theft during or after fire
  • Condition of average (Sum Insured increase upto 15% covered – during policy period)
  • Loss of profit and machinery break down cover not available

“Insurance is the subject matter of solicitation"
MADHUVAN INSURANCE BROKING – An IRDA recognized Insurance Broking House