Standard Fire & Special Perils Policy (Commercial)

Among life's many uncertainties, Fire and Natural Perils like Flood, Earthquake, Storm and Cyclones and Riots often prove to be the most damaging. Such an event not only causes the damage and destruction of your assets, it also leaves you with a huge financial burden to bear that is hard to recover. A single incident reduces everything to ashes which take years to re-build.

At such times, you need the safety of the DHFL Standard Fire and Special Perils Policy (Commercial).

This calms your worried mind by offering you comprehensive coverage and by giving you the financial support to recover from such sudden losses.

Our Standard Fire and Special Perils Policy (Commercial) covers all properties movable or immovable of an Individual, at various locations against named perils.

Applicability
All movable/ immovable properties of the proposer at specified location (excluding those in transit) broadly categorized as follows:

1. Building (including plinth and foundations, if required):
Whether completed or in course of construction (excluding the value of land).
Interiors, Partitions and Electrical's.

2. Plant & Machinery, Equipment's & Accessories (including foundations, if required)
New
Second Hand &
Obsolete Machinery

[B]3. Stocks:
Raw Material
Finished Goods
In process
In trade belonging to Wholesaler, Manufacturer and Retailer.

4. Other Contents such as
Furniture, Fixtures and Fittings
Cables, Piping's
Spares, Tools and Stores
Household goods etc.

5. Items such as bullion, unset precious stones, curios, work of arts, manuscripts, plans, drawings, securities, obligations or documents, stamps, coins or paper money, Cheque, books of accounts, computer system records, explosives, if specifically insured.

Perils Covered
The policy covers loss or damage due to Fire and other perils like Riot Strike and Malicious damage including Act of God perils like Storm, Flood, Cyclones and Earthquake (As an Add on cover) along with expenses that are incurred due to claims like Architect and Surveyor fees, removal of debris, loss of rent & rent for alternative accommodation (loss or expenses of rent is covered through add on covers).

Perils covered are listed below:

1. Fire - Excluding destruction or damage to the property insured by its own fermentation, natural heating or spontaneous combustion or its undergoing any heating or drying process.

2. Lightning - Fire or other damages due to lightning.

3. Explosion/Implosion - Excluding damage to a) boilers (other than domestic boilers) or their contents from their own explosion/implosion. b) caused by centrifugal forces.

4. Aircraft Damage - Damage caused by aircraft and other aerial devices and/ or articles dropped there from.

5. Riot, Strike, Malicious Damage - Damage to the property by such activity or by the action of any lawful authorities in suppressing such disturbance.

[B]6. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation

7. Impact Damage - Impact by any Rail/Road vehicle or animal not belong to or owned by the insured or any occupier of the premises or their employees.

8. Subsidence and Landslide including Rock slide - Damage caused by Subsidence, Landslide / Rock slide. Subsidence means sinking of land or building to a lower level. Landslide means sliding down of land usually on a hill.

[B]9. Bursting and/or overflowing of Water Tanks, Apparatus and Pipes

10. Missile Testing operations

11. Leakage from Automatic Sprinkler

12. Bush Fire - Excluding damages by Forest Fire.
Riot, strike and malicious damage (RSMD) and Storm, cyclone, typhoon, tempest, hurricane, tornado, flood and inundation (STFI) perils can be deleted with discount in premium rates. Terrorism is excluded from the scope of policy and can be covered on payment of additional premium

Add On Covers Offered

1. Architects, Surveyors and Consulting Engineers Fees (in excess of 3% claim amount)-
Up to 3% of claim amount is already covered in policy.

2. Removal of Debris (in excess of 1% claim amount)-
Dismantling/Demolition of building, plant and machinery and Removal of Debris, up to 1% is already covered in the policy.

3. (A) Deterioration of Stocks in Cold Storage premises-
Due to power failure consequent to damage at the premises of Power Station.

(B) Deterioration of stocks in cold storage premises-
Due to change in temperature arising out of loss or damage to the cold storage machinery's in the Insured's premises.

4. Forest Fire-
Damage to the property by burning of forest, bush, jungles and the clearing of lands by Fire.
5. Impact Damage due to Insured's own Rail/Road Vehicles, Fork lifts, Cranes, Stackers and the like and articles dropped therefrom-
Impact by any Rail/ Road vehicle or animal belonging to or owned by the insured or any occupier of the premises or their employees.

6. Spontaneous Combustion-
Destruction or damage to the property insured by its own fermentation, natural heating or spontaneous combustion or its undergoing any heating or drying process is covered.

7. Omission to Insure additions, alteration or extensions-
Buildings, Plant & Machinery and other contents which insured may acquire or erect during the policy period.

8. Earthquake-

9. Spoilage Material Damage Cover-
Damage due to cessation or retardation of any process.

10. Leakage and Contamination Cover-
Physical loss of oil/chemical due to leakage and contamination from its tanker.

11. Temporary Removal of Stocks Clause-
Shifting of stock to any other premises for the purpose of fabrication/Furnishing.

12. Loss of Rent-
If Building or part thereof is unfit for occupation due to operation of insured peril.

13. Insurance of Additional Expenses of Rent for An Alternative Accommodation-
It covers additional rent for non-manufacturing premises only during the period insured premises become inhabitable due to operation of insured perils.

14. Start-up Expenses-
Expenses incurred for start-up of operations after a loss caused by operation of insured peril.

EXCLUSIONS

Following are excluded from the scope of Policy.

1. This Policy does not cover (not applicable to policies covering dwellings)
(a) The first 5% of each and every claim subject to a minimum of Rs. 10,000 in respect of each and every loss arising out of Act of God perils such as Lightning, STFI, Subsidence, landslide and Rock slide covered under the Policy.

(b) The first Rs. 10,000 for each and every loss arising out of other perils in respect of which the Insured is indemnified by this Policy.

The Excess shall apply per event per Insured.

2. Loss, destruction or damage caused by war, invasion, act of foreign enemy hostilities or war like operations (whether war be declared or not), civil war, mutiny, civil commotion assuming the proportions of or amounting to the popular rising, military rising, rebellion, revolution, insurrection or military or usurped power.

3. Loss, destruction or damage directly or indirectly caused to the property insured by

(a) Ionizing radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel.

(b) The radioactive toxic, explosives or other hazardous properties of any explosive nuclear assembly or nuclear component thereof.

4. Loss, destruction or damage caused to the insured property by pollution or contamination excluding

(a) Pollution or contamination which itself results from a peril hereby insured against.

(b) Any peril hereby insured against which itself results from pollution or contamination

5. Loss, destruction or damage to bullion or unset precious stones, any curios or works of art for an amount exceeding Rs. 10000/-, goods held in trust or on commission, manuscripts, plans, drawings, securities, obligations or documents of any kind, stamps, coins, or paper money, cheques, books of accounts or other business books, computer systems records, explosives unless otherwise expressly stated in the Policy.

6. Loss, destruction or damage to the stocks in Cold Storage premises caused by change of temperature.

7. Loss, destruction or damage to any electrical machine, apparatus, fixture, or fitting arising from or occasioned by over-running, excessive pressure, short circuiting, arcing, self-heating or leakage of electricity from whatever caused (lightning included) provided that this exclusion shall apply only to the particular electrical machine, apparatus, fixture or fitting so affected and not to other machines, apparatus, fixtures or fittings which may be destroyed or damaged by fire so set up.

8. Expenses necessarily incurred on (i) Architects, Surveyors and Consulting Engineer's Fees and (ii) Debris Removal by the Insured following a loss, destruction or damage to the property insured by an insured peril in excess of 3% and 1% of the claim amount respectively.


9. Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind or description whatsoever.

10. Loss or damage by spoilage resulting from the retardation or interruption or cessation of any process or operation caused by operation of any of the perils covered.

11. Loss by theft during or after the occurrence of any insured peril except as provided under Riot, Strike, Malicious and Terrorism Damage cover.

12. Any Loss or damage occasioned by or through or in consequence directly or indirectly due to earthquake, volcanic eruption or other convulsions of nature.

13. Loss or damage to property insured if removed to any building or place other than in which it is herein stated to be
insured, except machinery and equipment temporarily removed for repairs, cleaning, renovation or other similar purposes for a period not exceeding 60 days.