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The IAR policy is a true "All Risks Policy" for operational risks. It is more competitive as compared to the present named perils operational policies which have a limited scope of cover.
The IAR policy is a true "All Risks Policy" for operational risks. It is more competitive as compared to the present named perils operational policies which have a limited scope of cover. In an "All Risks" cover all fortuitous mishaps are insured barring a few named exclusions.
Benefits
Umbrella /Comprehensive Cover under one single Policy
Economical Rate of Premium
Option for Higher than standard deductible in return of liberal discounts in premium rate
Grey area claims eliminated altogether
Protects against all possible aspects of risk exposure which may have been overlooked inadvertently
Covers eventualities which cannot be taken care of by any of the present operational policies available like Fire, MBD Policy etc
Multiple locations can be covered under one single Policy
Eligibility
Industrial Units - Both manufacturing as well as Storage Units. (Excluding Petroleum Refineries, Petrochemical and Fertilizer Plants) Overall Sum Insured of Rs.10 crores and above in one or more locations in India.
Scope of cover
Material Damage Section Fire & Allied Perils
Fire
Lightning
Riot, Strike, Malicious Damages
Terrorism
Explosion/ Implosion
Impact Damage
Storm, Typhoon, Hurricane, Tornado, Flood and Inundation
Impact damage
Subsidence and landslide including Rock slide
Bursting and overflowing of water tanks, apparatus and Pipes
Missile testing operations
Leakage from Automatic Sprinkler Installation
Bush Fire
Earthquake, Fire & Shock
Leakage and Contamination
Spoilage Material damage following operation of Insured Peril
Subterranean Fire
Spontaneous Combustion
Forest Fire
Deterioration of Stock following FOES
Sprinkler Leakage
Theft Burglary (other than Larceny) Transit Risk inside insured premises Boiler Pressure Plant insurance
Explosion/implosion due to its own working
Explosion due to Smelt water reaction for waste heat boiler
Flue Gas Explosion
Machinery Breakdown Insurance
Mechanical & Electrical Breakdown
Business Interruption Section
Loss of profit following fire and allied perils
Loss of profit following claims under Machinery Breakdown insurance, Boiler& Pressure Plant insurance or Electronic Equipment Insurance (Optional)
Exclusions
The intangible but more correct way of viewing such a Policy is through its exclusions. In effect, save for the few listed exclusions all accidental damages are covered.
Material Damage Section
Excluded causes
Faulty or defective design or workmanship
Inherent vice, latent defect
Gradual deterioration, wear and tear
Interruption of water supply, gas, electricity or fuel systems
Failure of effluent disposal systems
Collapse or cracking of building
Corrosion, rust, fungus, shrinkage, pollution
Action of light, vermin, insects
Larceny
Acts of fraud and dishonesty
Inventory losses
Coastal and river erosion
Willful act or willful negligence
War, invasion, mutiny, civil commotion
Permanent or temporary dispossession resulting from requisition by
lawful authority
Destruction by order of public authority
Nuclear weapons material, ionizing radiations
Excluded property
Money, cheques and other valuable documents.
Goods held in trust or on commission unless specifically mentioned in the policy
Vehicles licensed for road use
Property in transit other than that within the insured premises
Property in course of demolition, construction or erection
Land (including top soil) back fill, drainage or culverts, roads, runways, railway lines, reservoir, canals, tunnels, bridges, piers unless specially covered
Livestock, growing crops or trees
Property damaged as a result of its undergoing any process
Property undergoing alteration, repair, testing, or servicing if damage thereto directly attributable to the operations of work performed thereon
Interruption Insurance Section
The Policy does not cover loss resulting from interruption of or interference with the business directly or indirectly from:
Any restriction or reconstruction or operation imposed by any public authority
Lack of sufficient capital to ensure timely restriction of normalcy
Suspension, lapse or cancellation of a lease license or order
Damage to boilers, economizers, turbines or other vessels where pressure is used resulting from their explosion implosion
Damage to electronic equipment, computers
Mechanical breakdown or derangement of machinery last three exclusions are deleted in case MLOP cover is opted for.
Favorable Features
Better coverage
Transit risk cover within compound available
Cover provided for equipment's and machinery sent for repairs outside the premises for up to 60 days
No deduction on account of depreciation from claim amount for damage , whether total or partial
15% under insurance has been allowed without affecting claim amount
LOP due to burglary and other accidental damage cover
Standard time excess under MLOP reduced
Standard Deductibles
Material Damage Claim
5% of the claim subject to a minimum of Rs.5 lacs and maximum of Rs.50 lacs.
Business Interruption Claims
3 days gross profit subject to a minimum of Rs. 5lacs and maximum of Rs. 50 lacs.
NB: Scheme for higher than Standard Deductible available which fetches attractive discount in premium rate.
Sum Insured
Material Damage Section
Building, plant, machinery and other fixed assets - at Reinstatement value basis
Stock and other Current assets - at Market Value
Business Interruption Section
Turnover less variable Charges
