Perils Covered under Standard insurance policy

Fire insurance is must for all types of industries, offices, factories, households and other properties and assets. They cover the loss and damage to Industrial Tools, Plant & Machinery, Furniture, Fixtures and Fittings, Electrical Installations, Buildings etc.

Damage covered under standard insurance policy

A. Lightning, Explosion/Implosion

Excluding loss, destruction or damage

• To boilers (other than domestic boilers),
• Economizers or other vessels
• Machinery or apparatus( in which steam is generated)
• Contents resulting from their own explosion/implosion caused by centrifugal forces.

B. Aircraft Damage

Loss, Destruction or damage caused by Aircraft or other aerial & space devices , articles dropped therefrom excluding those caused by pressure waves.

C. Riot, Strike, Malicious and Terrorism Damage

Loss of or visible physical damage or destruction by external violent means directly caused to the property insured but excluding those caused by

• Total or partial cessation of work or the retardation or interruption or cessation of any process or operations or omissions of any kind.
• Permanent or temporary dispossession resulting from confiscation, commandeering, requisition or destruction by order of the Government or any lawfully constituted Authority.
• Permanent or temporary dispossession of any building or plant or unit or machinery resulting from the unlawful occupation by any person of such building or plant or unit or machinery or prevention of access to the same.
• Burglary, housebreaking, theft, larceny or any such attempt or any omission of any kind of any person (whether or not such act is committed in the course of a disturbance of public peace) in any malicious act.
• Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation
• Loss, destruction or damage directly caused by Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood or Inundation excluding those resulting from earthquake, Volcanic eruption or other convulsions of nature.
• Wherever earthquake cover is given as an “add on cover” the words “excluding those resulting from earthquake volcanic eruption or other convulsions of nature” shall stand deleted.

D. Impact Damage

Loss of or visible physical damage or destruction caused to the property insured due to impact by any Rail/Road vehicle or animal by direct contact not belonging to or owned by

• The Insured or any occupier of the premises.
• Their employees while acting in the course of their employment.

E. Subsidence and Landslide including Rockslide

Loss, destruction or damage directly caused by Subsidence of part of the site on which the property stands or Land slide/Rock slide excluding:

• The normal cracking, settlement or bedding down of new structures
• The settlement or movement of made up ground
• Coastal or river erosion
• Defective design or workmanship or use of defective materials
• Demolition, construction, structural alterations or repair of any property or groundworks or excavations.

F. Missile Testing operations

G. Leakage from Automatic Sprinkler Installations

Excluding loss, destruction or damage caused by

• Repairs or alterations to the buildings or premises
• Repairs, Removal or Extension of the Sprinkler Installation
• Defects in construction known to the Insured.

H. Bushfire

Excluding loss, destruction or damage caused by Forest Fire.

• Fire
• Lightning
• Explosion/Implosion
• Aircraft damage
• Riot, Strike & Malicious Damage
• Impact damage
• Subsidence , landslide
• Bursting or overflowing of tanks
• Bush fire etc.
• Earthquake
• Storm, Flood, inundation

What is not Covered ?

The policy does not cover any loss if

• Loss or damage to property due to :
• Spontaneous combustion, fermentation
• Burning of property by order of any Public Authority
• Its undergoing any heating or drying process
• Explosion of boilers (other than domestic boilers)
• Total or partial cessation of work
• Permanent or temporary dispossession by order of Government
• Burglary, Housebreaking, theft
• Normal Cracking or settlement or bedding down of new structures
• War or war like operations
• Defective design, workmanship, defective materials
• Pollution or contamination
• Over-running, short circuit etc.
• Spoilage loss

Add on Covers Available:

• Terrorism
• Removal Of Debris
• Architects, Surveyors, Consulting Engineers fees
• Spontaneous combustion
• Startup expenses
• Spoilage Material Damage Cover
• Leakage and Contamination cover

These additional covers are available by payment of additional premium

Fire Claims Must Satisfy These Situations?

• Loss must have been caused by fire or ignition and not just by high temperature
• Loss or damage must relate to the subject matter of the policy
• Ignition must be either of the goods or of the premises where goods kept
• Fire caused by malicious or deliberate act the insurer will not be liable for the loss.

Every Insurance Policy has their own set of terms and conditions. The above-mentioned category risk cover should be chosen accordingly. Count on the Right Policy to take final decision before purchase.