National Bharat Sookshma Udyam Suraksha Policy

Photo by Sarah Chai from Pexels

The National Bharat Sookshma Udyam Suraksha Policy gives insurance cover to Your property relating to Your business. Under this policy, Insurer agree to pay You for the loss You suffer when unexpected events cause physical loss, damage or destruction of building and structures, plant and machinery, stock and other assets relating to Your business.

This Policy gives three types of covers:

1. Standard Cover for the building and structures, plant and machinery, stock and other assets relating to Your business.

2. In Built Covers: Under the Standard Cover if We agree to pay Your claim for loss or damage to Insured Property, We will also pay for the following loss or damage and expenses.

i. Additions, alterations or extensions: Property that You erect, acquire or add during the Policy Period is covered upto 15% of the sum insured for that item (excluding stocks).

ii. Stocks on floater basis: Loss to stocks located at more than one named location.

iii. Temporary removal of stocks: Loss to stocks temporarily removed to other premises for fabrication, processing or finishing upto 10% of value.

iv. Cover for Specific Contents: Cover for money upto ₹50,000 (Rupees Fifty Thousand) during the policy period, cover for documents such as deeds, manuscripts, business books, plans, drawings, securities etc., upto ₹50,000 (Rupees Fifty Thousand) during the policy period, cover for computer programmes, information and data upto ₹ 5 Lakh (Rupees Five Lakh) during the policy period and cover for personal effects of employees, Directors and visitors upto ₹15,000 ( Rupees Fifteen Thousand ) per person for a maximum of 20 (twenty) persons during the policy period.

v. Start Up Expenses: Start-up cost incurred by You, consequent upon a loss or damage due to insured events upto ₹ 1 lakh ( Rupees One Lakh) during the policy period.

vi. Professional fees: Reasonable fees of architects, surveyors and consulting engineers upto 5% of the claim amount

vii. Cost of Removal of debris: Reasonable expenses for removal of debris upto 2 % of the claim amount.

viii. Costs compelled by Municipal Regulations: Additional cost of reconstruction of property incurred solely for complying with municipal regulations.

Standard Add-on

Declaration Policy for Stocks: Cover for frequent fluctuations in stock/stock values on declaration basis.

How the National Bharat Sookshma Udyam Suraksha Policy will help me in unfortunate event?

If the building and structures, plant and machinery, stock and other assets relating to Your business are lost, damaged or destroyed because of unexpected events that occur during the period of this policy, insurer will provide insurance cover as follows:

Table 1.1: Insurance cover
Your loss	Condition	Insurer pay, but not more than the Sum Insured
Any Insured Property is damaged (Partial Loss)	You have repaired such property.	Cost of repairs
If any Insured Stock is damaged (Partial Loss)		Extent of the loss of such Partial Loss
Any Building or Plant and Machinery or Furniture, Fixture, Fittings is completely destroyed. (Total Loss)	You have rebuilt the building or reinstated such property.	Reinstatement Value
Stock is completely destroyed (Total Loss)		a) For raw material: Landed Cost at Your Premises. b) For stock in process: Input Cost of the stock at the time of damage c) For finished stock: the Manufacturing Cost of the Finished Stock or the Contract Price of goods sold but not delivered
Any Building, Plant and Machinery, Furniture, Fixture and Fittings is completely destroyed (Total Loss)	You have not rebuilt the building or reinstated other property.	Market Value (Reinstatement Value less Depreciation)

Which unfortunate events does it cover?

Insurer pays for physical loss or damage, or destruction caused to Insured Property by the following unforeseen events. The events covered are given in the Column A and those not covered in respect of these events are given in Column B

Table 1.2 Insured Events (Insurable Interests)
Sl.	Column A Insurer covers physical loss or damage, or destruction caused to the Insured Property by	Column B Insurer do not cover loss or damage, or destruction caused to the Insured Property by
1.	Fire, including due to its own fermentation, or natural heating or spontaneous combustion.	caused by a. its undergoing any heating or drying process, or b. burning of Insured Property by order of any Public Authority
2.	Explosion or Implosion	a. caused to boilers, economizers or other vessels, machinery or apparatus in which steam is generated, or their contents, resulting from their own explosion or implosion, or b. caused by centrifugal forces.
3.	Lightning	-
4.	Earthquake, volcanic eruption, or other convulsions of nature	-
5.	Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Tsunami, Flood and Inundation,	-
6.	Subsidence of the land on which Your Premises stand, Landslide, Rockslide	caused by a. normal cracking, settlement or bedding down of new structures, b. the settlement or movement of made up ground, c. coastal or river erosion, d. defective design or workmanship or use of defective materials, or e. demolition, construction, structural alterations or repair of any property, or ground works or excavations.
7.	Bush Fire, Forest Fire, Jungle Fire	-
8.	Impact damage of any kind, i.e., damage caused by impact of, or collision caused by, any external physical object (e.g. vehicle, falling trees, aircraft, wall etc.)	a. caused by pressure waves caused by aircraft or other aerial or space devices travelling at sonic or supersonic speeds. b.caused by vehicle, animal or aircraft belonging to or owned by Insured or their employee while acting in course of employment.
9.	Missile testing operations	-
10.	Riot, Strikes, Malicious Damages	caused by a. total or partial cessation of work or the retardation or interruption or cessation of any process or operations or omissions of any kind, b. temporary or permanent dispossession, confiscation, commandeering, requisition or destruction by order of the government or any lawful authority,or c. temporary or permanent dispossession of any Building by unlawful occupation by any person.
11.	Acts of terrorism (Coverage as per Terrorism Clause attached.)	Exclusions as per Terrorism Clause attached.
12.	Bursting or overflowing of water tanks, apparatus and pipes,	-
13.	Leakage from automatic sprinkler installations	a. repairs or alterations in the Building in which Your Business is located, b. repairs, removal or extension of any sprinkler installation, or c. defects in the construction known to You.
14.	Theft within 7 days from the occurrence of, and proximately caused by, any of the above Insured Events	if it is a. of any article or thing outside Your Premises, or b. of any article or thing attached from the outside of the outer walls or the roof of Your Premises, unless securely mounted.