Scope of Coverage under harat Laghu Udyam Suraksha Policy as per IRDAI

1. Standard Coverage

The Bharat Laghu Udyam Suraksha Policy provides coverage against physical loss or damage to the insured property caused by the following perils:

1. Fire:
– Covers loss or damage due to fire, including accidental fires, electrical short-circuits, etc.

2. Natural Catastrophes:
– Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, and Flood: Covers damage caused by these natural calamities.
– Earthquake (including Fire following Earthquake): Provides coverage for loss or damage due to earthquakes and any resultant fire.

3. Impact Damage:
– Covers damage due to impact by any external physical object, such as vehicles or falling trees.

4. Explosion/Implosion:
– Coverage for damage caused by explosion or implosion of boilers, gas storages, and other equipment.

5. Lightning:
– Covers damage caused by lightning strikes.

6. Riot, Strike, Malicious Damage:
– Protection against losses due to riots, strikes, or malicious acts leading to damage to the insured property.

7. Theft and Burglary:
– Covers damage or loss due to theft, burglary, or attempted theft.

8. Terrorism (Optional Coverage):
– Coverage for loss or damage due to acts of terrorism, if opted for.

9. Bursting/Overflowing of Water Tanks, Apparatus, and Pipes:
– Covers damage caused by accidental bursting or overflowing of water tanks or pipes.

10. Leakage from Automatic Sprinkler Installations:
– Covers damage due to accidental leakage from automatic sprinkler systems.

11. Subsidence and Landslide including Rockslide:
– Coverage for damage due to ground subsidence, landslides, or rockslides.

12. Bush Fire:
– Covers damage caused by uncontrolled fire spreading through forests or bushes.

2. Coverage for Various Types of Property

The policy covers a broad range of properties owned by medium-sized enterprises, including:
– Buildings: Commercial, industrial buildings, warehouses, and other structures used for business purposes.
– Plant and Machinery: Machinery, equipment, and tools essential to business operations.
– Stock: Raw materials, finished goods, and work-in-progress stored on the premises.
– Furniture, Fixtures, and Fittings: Office furniture, fixtures, and other business-related contents.
– Other Contents: Includes computers, office equipment, and other assets used in the business.

3. Extensions and Additional Coverages

– Debris Removal: Covers costs associated with removing debris following an insured event.
– Architects, Surveyors, and Consulting Engineers Fees: Coverage for professional fees necessary for the repair or replacement of damaged property.
– Start-Up Costs: Protection for additional costs incurred to restart operations after a major loss.
– Expenses for Temporary Repairs: Covers expenses for temporary repairs to protect the property from further damage.
– Loss of Rent: Optional coverage for loss of rent or rental income due to damage to the property.
– Additional Rent for Alternate Accommodation: Coverage for additional rent expenses if the insured premises become uninhabitable.

4. Exclusions

The Bharat Laghu Udyam Suraksha Policy typically excludes the following:
– Willful Act or Gross Negligence: Loss or damage due to deliberate acts or gross negligence by the insured.
– War and Nuclear Perils: Damage caused by war, invasion, civil war, or nuclear risks.
– Pollution and Contamination: Excludes damage due to pollution or contamination unless directly caused by an insured peril.
– Normal Wear and Tear: Excludes damage due to normal wear and tear, gradual deterioration, or inherent defects.
– Consequential Losses: Indirect losses such as loss of market, unless specifically covered by the policy.
– Loss or Damage Due to Temperature Changes: Excludes damage to stock due to changes in temperature unless caused by an insured peril like machinery breakdown.