What does the policy cover?

The policy covers not only the physical loss or damage but also consequential losses arising out of the business interruption due to accidental unforeseen physical loss or damage to property.

How much Excess to be paid?

Compulsory Excess

Material Damage Claims-Deductibles shall be 5% of the claim amount subject to a minimum of Rs.5 Lakhs and Maximum of Rs. 50 Lakhs.

Business Interruption Claims- Deductibles shall be three days Gross Profit subject to a minimum of Rs. 5 Lakhs and a maximum of Rs. 50 lakhs.

Voluntary Excess

Material Damage Claims- Insured may opt for higher excess for which suitable discounts in premium may be considered ranging from 10% to 25%

Business Interruption Claims- Range for the discounts is from 5% to 25% for opting higher excess.

How are rates determined?

Material Damage Section:

  • FIRE - Rates as per the Standard Fire Special Perils Policy.
  • Machinery Breakdown - 2.50%o.

Loss of profit Section:

  • FLOP - as per Fire (LOP) Tariff less 10% discount.
  • MLOP - to be referred to as TAC.

NB: Based on the favorable claims ratio, a discount of up to 25% can be allowed.