Standard Fire an Special Perils

1. I want to take Standard Fire and Special Perils policy for my building; can I cover the value of the land also?

No. It is not required to include the value of land in the sum insured as it does not get affected due to operation of any perils covered by the insurance policy.

2. Is it possible to avail Standard Fire and Special Perils insurance for periods in excess of one year?

Long term policy can be provided for covering dwelling units only.

3. What are the perils covered under the Standard Fire and Special Perils policy?

The following perils are covered under the policy

• Fire
• Lightning
• Explosion / Implosion
• Aircraft damage
• Riot, Strike, Malicious and Terrorism damage (hereinafter called RSMTD Perils)
• Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon and Tornado.
• Impact by any Rail/ Road vehicle or animal
• Subsidence / Landslide including rockslide.
• Bursting and / or overflowing of water tanks, apparatus.
• Leakage form Automatic Sprinkler Installation.
• Missile Testing Operation.
• Pollution or contamination resulting from any of the above perils
• Any insured peril resulting from pollution and contamination.
• Bush Fire

4. What are the properties covered under Standard Fire and Special Perils policy?

All moveable/ immoveable properties of the proposer on land (excluding those in transit) broadly categorized as follows:

• Building (including plinth and foundations, if required):
• Whether completed or in course of construction (excluding the value of land).
• Interiors, Partitions and Electricals.
• Plant & Machinery, Equipments & Accessories (including foundations, if required)
• Bought Second hand.
• Bought New

• Stocks:
• Raw Material
• Finished Goods
• In process
• In trade belonging to Wholesaler, Manufacturer and Retailer.
• Other Contents such as
• Furniture, Fixtures and Fittings
• Cables, Pipings
• Spares, Tools and Stores
• Household goods etc.
• Specific Items such as bullion, unset precious stones, curios, work of arts, manuscripts, plans, drawings, securities, obligations or documents, stamps, coins or paper money, cheques, books of accounts, computer system records, explosives.

5. Do we have any special type of policy to cover stocks under Standard Fire and Special Perils policy?

Yes we have Declaration and Floater policy

• Declaration Policy :
• To take care of frequent fluctuations in Stocks/ Stock Values
• Minimum Sum Insured Rs. 1 crore per location.
• Monthly declaration on any one of the following basis to be submitted before the last day of the succeeding month
• Average of the highest values at risk on each day (or)
• Highest value on any day of the month.
• Refund of premium, on expiry of policy, based on the average declaration up to 50% of the provisional premium.
• Floater Policy :
• To take care of frequent changes in values at various locations.
• Single sum insured for all the stocks in all the locations.
• Nominal premium loading to cover all the stocks in all the locations.

6. If I opt for Standard Fire and Special Peril policy, whether coverage of Earthquake and Terrorism is automatic?

Earthquake and Terrorism perils are not inbuilt under Standard Fire and Special Peril Policy. These perils are available as extensions and need to be availed by payment of additional premium.

7. Can I delete some of the perils from the Standard Fire and Special Peril Policy?

Yes. Storm ,Tempest, Flood & Inundation and Riot, Strike & Malicious Damage perils can be deleted at the inception of the policy for which suitable reduction in premium rate is allowed.

8. Is there a provision for cancellation of Standard Fire and Special Perils policy?

Policy can be cancelled at any time during the currency with suitable refund of premium for the unexpired period.

If policy is canceled by Insurance Company, premium will be refunded on prorate basis
If you cancel the policy, premium will be refunded on short period basis

9. What are the expenses covered under the Standard Fire and Special Perils policy by default?

Architects, Surveyors' Consultant Engineers fees and Debris Removal up to 3% and 1% of claim amount respectively are allowable in the event of an admissible claim under the policy.

10. Can I insure my works of art under Standard Fire and Special Peril Policy?

Yes, works of art can be insured subjected to acceptable valuation certificate

11. Whether the Standard Fire and Special Perils policy covers losses arising out of theft and burglary?

Generally loss arising out of theft and burglary are not covered under Standard Fire and Special Peril policy except those occurring during riot and strike incident

12. What are the add on covers under the Standard Fire and Special Perils policy?

• Deterioration of Stocks in Cold Storage premises due to power failure following damage due to an insured peril
• Forest Fire
• Impact Damage due to Insured's own Vehicles, Fork lifts and the like and articles dropped there from
• Spontaneous Combustion
• Omission to insure additions, alterations or extensions
• Earthquake (Fire and Shock).
• Spoilage material damage cover.
• Leakage and contamination cover.
• Temporary removal of stocks.

13. Who can take the Standard Fire and Special Perils policy?

Any person / firm / organization / institution who may suffer financial loss in the event of operation of insurable perils may insure such property under the fire policy. They may be broadly categorized as under :

• Owners of Building and contents such as house hold articles, furniture etc.
• Shop Keepers.
• Educational/ Research Institutions.
• Hotels, Boarding and Lodgings, Hospitals, Clinics or such service providers.
• Industrial and Manufacturing Firms.
• Godown Keepers.
• Bailees, Lessor, Lessee, Banks, Financial Institutions, Mortgagors, Mortgagees.
• Traders in stocks.
• Trustees, Charitable Institutions.
• Transporters and C & F Agents.

14. What is meant by excess?

Excess is small portion of the claim amount which is borne by policy holder in the event of loss or damage. However this is not applicable for dwellings

15. Why do I require Business Interruption Insurance?

Generally Material Damage insurance policies viz. Fire and Machinery Breakdown Insurances cover only physical damage to property by insured perils and reimburse the expenses incurred for repairing or replacing the damaged property.
But this policy offers a solution by covering profit lost due to reduction in turnover arising from interruption of business following damage to the property insured.
This policy can be taken only in conjunction with Material Damage insurances like Fire Policy or Machinery Breakdown policy.
This policy is also known as Loss of Profit Insurance.

16. What is the coverage under the Business Interruption Insurance Policy?

The policy covers:

• Loss of gross profit
• Increased cost of working

17. What is the basis of Sum Insured for Business Interruption Insurance Policy?

Annual Gross Profit of the entity is taken as a base for computing the sum insured under this insurance.