This insurance policy protect your property like buildings, plant and machinery, stocks and other installation against losses or damage caused by fire, flood, storm, earthquake, terrorism, vandalism, theft, smoke, hail, the impact of snow and ice, lightning, accidental damage and breakdown and more. This policy cover the cost to replace or repair the property by providing monetary compensation.
This policy is comprehensive cover for loss or damage to all industrial risks (other than risks ratable under the Petrochemical Tariff) with an overall Sum Insured of 100 Cr. and above in one or more locations in India.
The IAR Policy should be taken by Industries which is looking to cover all major risk in their plant in a single Policy.
The policy covers all risks/perils other than those which are specifically excluded. The cover in its widest form, referred to as “All Risk“ includes the following perils/covers:Section I (Material Damage)
I. Fire and All Special Perils
II. Burglary including Theft
III. Machinery Breakdown/Boiler Explosion/Electronic Equipment Insurance
Section II (Business Interruption)
In addition to the perils/ expenses covered, the proposer can opt to seek cover in respect of the following perils/ expenses at inception or during currency of the policy on payment of additional premium: Perils Covered
Material Damage Section
Business Interruption Section
The IAR policy is an "All Risks" operational policy that covers all fortuitous mishaps barring a few named
These exclusions are:
Material Damage Section A) Excluded Causes
B) Excluded Property
Claims amount get reduced proportionately In relation to Sum Insured/ Value at Risk
Properties or machineries should be insured for market value or replacement value to be considered as on the date of loss (Not on the date of insurance) to avoid average clause
Adequate Sum Insured to be taken after Valuation
In a manufacturing plant short circuiting in a heavy machine due to which the claim was denied by the Insurance company
Asset in which the short circuiting has originated is not covered as per the domain clause provision under policy terms and conditions.
Exact smaller part from which the shortcircuiting had occurred was identified. This resulted in the increase in the claim amount because the cost of the smaller part was only disallowed.
Critical machines to be covered under both Fire and Machinery Break Down Policy so that this exclusion is not applicable and there is a resultant increase in the claim amount.
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