This policy is a Comprehensive Package Policy that covers almost all risks and perils, which a large industry may face during its operation. This policy covers Buildings, Machinery, Furniture, Fixtures, Fitting & electrical installations on Reinstatement value, while the stock is covered on market value basis. Underinsurance on each item of the schedule will be ignored if it does not exceed 15% of sum insured. Policy also covers equipment and machinery sent for repairs outside the premises for a period of 60 days. Transit risk inside the compound of an industry is also covered.
Covered risks include:
- Bursting and overflowing of water tanks
- Apparatus and pipes
- Deterioration of stocks due to power failure following damage to premises of public power stations and electric service feeders (for Cold Storages)
- Forest fire
- Leakage and Contamination cover
- Spoilage Material Damage cover
- Sprinkler leakage cover
- Subterranean fire
- Spontaneous and Landslide cover
- Burglary (other than Larceny)
- Machinery Breakdown/Boiler explosion/Electronic Equipment
- Business Interruption following fire
- Business Interruption following Machinery Breakdown Major Exclusions
- Damage to the property caused by faulty or defective design materials or workmanship, inherent vice, wear and tear etc.
- Interruption of water supply, gas, electricity or fuel systems
- Collapse or cracking of the building
- Willful act or gross negligence.
- War, Invasion, mutiny, rebellion, revolution etc.
- Damage direct or indirect by nuclear weapons material and contamination by radioactivity