National Bharat Sookshma Udyam Suraksha Policy

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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


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


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)

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


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


or their contents, resulting from their

own explosion or implosion, or

b. caused by centrifugal forces.

3. Lightning -

Earthquake, volcanic eruption,

or other convulsions of nature


Storm, Cyclone, Typhoon,

Tempest, Hurricane, Tornado,

Tsunami, Flood and Inundation,


Subsidence of the land on which

Your Premises stand, Landslide,


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



Bush Fire, Forest Fire, Jungle



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 -

Riot, Strikes, Malicious


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


c. temporary or permanent

dispossession of any Building by

unlawful occupation by any person.


Acts of terrorism (Coverage as

per Terrorism Clause attached.)

Exclusions as per Terrorism Clause



Bursting or overflowing of water

tanks, apparatus and pipes,


Leakage from automatic

sprinkler installations

a. repairs or alterations in the

Building in which Your Business is


b. repairs, removal or extension of

any sprinkler installation, or

c. defects in the construction known

to You.


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.