Bharat Sookshma Udyam Suraksha Policy
In its latest released press on 4th January 2021, the Insurance Regulatory and Development Authority of India (IRDAI) has announced that the Special Fire and Special Perils (SFSP) Policy that was provided earlier under All India Fire and Tariff (AIFT), 2001, will be replaced by the three standard insurance products namely Bharat Griha Raksha Policy, Bhaarat Sookshma Udyan Sukaksha Policy, Bharat Laghu Udyam Suraksha Policy and the general insurers that have been offering the policies for fire and allied perils insurance will be offering the newly launched insurance products from 1st April 2021
Key Highlights of Bharat Sookshma Udyam Suraksha Policy.
Bharat Sookshma Udyam Policy can protect your business in different ways. Let’s have a look at the key highlights of this policy.
Eligibility Criteria of Bharat Sookshma Udyam Suraksha Policy
Let’s have a look at the following regarding which property and who are eligible for this policy.
Eligibility of The Policy SeekerYou can buy this cover for any property that is directly connected to Your business if you are the owner, tenant, lessee, purchaser, or you hold it as a trustee on commission or are responsible for it and liable for taking insurance.
If the value of all Insurable Assets (whether insured or not) at any one business location is within the limit of Rs. 5 Crores at the Policy Commencement Date. But if the value of Your Insurable Assets exceeds Rs. 5 Crores at the policy Commencement Date, you have to go for the applicable policy that is meant for your business risk
What Coverage Does Bharat Sookshma Udyam Suraksha Policy Provide?
This Policy provides you with three types of covers to keep your business protected..
1. Standard Cover – This type of coverage safeguards the building and structures, plant and machinery, stock, and other assets that have a direct connection to Your business.
2. In-Built Covers – The In Build covers refer to the following coverage for the loss or damages that this policy offers along with the Standard Covers.
3. Standard Add-on – According to the requirements of your business, you can extend the benefits of the policy by adding one or multiple add-ons by paying an additional premium for that. It is to be remembered that the additional benefits may vary from insurer to insurer.
What Are The Exclusions of The Bharat Sookshma Udyam Suraksha Policy?
There are some exclusions under Bharat Sookshma Udyam Suraksha Policy and the general events that are covered by the policy are mentioned below
If you suffer any loss or damage that has been done by you deliberately or willfully, the insurer does not take the responsibility for that.
If any loss, destruction, or damage to your stocks in cold storage due to a change in temperature, your loss will not be covered by the policy.
Any loss occurred due to war, invasions or war-like situation will be excluded from the coverage
Due to ionization or radioactive waves, if any loss or damage occurs that will not be covered by the company
Damage or loss arising out of pollution or contamination will not be reimbursed
The costs, fees, expenses that occur to you due to the preparation of the claim will be excluded from the coverage
If your building insured under this policy remains unoccupied for more than 30 days, in that case, no compensation will be provided for any loss or damage
If the insured property is missing or has been mislaid, no reimbursement will be offered in that case
If you suffer any consequential or indirect loss or damage, the company does not take any responsibility for that
Loss, damage, or destruction to any electrical/electronic machine, apparatus, fixture, or fitting due to over-running, excessive pressure, short-circuiting, arcing, self-heating, or leakage of electricity from whatever cause (lightning included) is not covered under this policy.
How Does Bharat Sookshma Udyam Suraksha Policy protect the Insured?
To make it more understandable and simpler for you, here is one table that gives you the details of the coverage that the Bharat Sookshma Udyam Policy offers to protect you in different ways.
General Protections
| Your Lossr | Condition | The policy will 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) | The extent of the loss of such partial loss | |
| Any building or plant and machinery or furniture, fixture, fitting is completely destroyed. (total loss) | You have rebuilt the building or reinstated such property. | Reinstatement value |
| Stock is completely destroyed (total loss) | 1. For raw material – Landed cost at your premise. | |
| Any building or plant and machinery or furniture, fixture, fitting is completely destroyed. (total loss) | You have not rebuilt the building or reinstated other property. | Market value (Reinstatement Value less depreciation) |
Unexpected Events Coverage
Insurance cover for physical loss or damage, or destruction caused to Insured Property by the following unforeseen events occurring during the Policy Period..
Fire – If your insured residence or the articles within it get damaged by fire even by bush, jungle fire, the company will cover that loss
Explosion or Implosion – Any damage or loss that occurred due to explosion or implosion is covered under this policy.
Natural Catastrophes – The Bharat Griha Raksha Policy protects your house building and the things within it from natural disasters like earthquakes, lightning, volcanic eruption, or other convulsions of nature
Unfortunate Calamities – This insurance policy offers coverage for different unfortunate calamities such as typhoons, tornadoes, tsunami, floods, cyclones, storms, hurricanes, tempests, and some more
Unexpected Perils – Your home building and its articles are protected under this policy against subsidence of the land on which Your Home Building stands, Landslide, Rockslide
Public Commotions – If your house or its articles get damaged or destroyed by acts of terrorism, riots, strikes, or any other public unrest, the company will bear that loss
Leakage – If you suffer a loss due to leakage from automatic sprinkler installations, bursting or overflowing of water tanks, apparatus, and pipes, the company will compensate for that
What Are The Factors of The Sum Insured of Bharat Sookshma Udyam Suraksha Policy?
There are some factors on the basis of those the sum insured under this policy is calculated. The followings are the factors of the sum insured of Bharat Sookshma Udyam Suraksha Policy..
Contract Price is in respect only of goods sold but not delivered, for which you are responsible and with regard to which under the conditions of the sale, the sale contract is canceled by reason of any damage insured under this Policy either wholly or to the extent of the damage. The Company’s liability shall be based on the Contract Price
How Much Reimbursement Will I Receive if There is a Covered Loss?
The factors of calculating the sum insured under Bharat Sookshma Udyam Suraksha Policy are mentioned above. The amount you need to reinstate or replace the damaged or destroyed building, plant and machinery, stock, and other assets is covered under the policy and this is the Sum Insured for each item or group of items. In case of partial loss, the amount you have spent to repair them is reimbursed and in case of a total loss, the maximum amount that the policy will pay is the sum insured for that item or content
Your document namely Policy Schedule will reflect the amount of Sum Insured for each cover and for the item of property. In case of a successful claim that is the maximum amount, this policy will pay if the actual cost of repair, rebuilding, or replacement is higher. This policy will automatically end when the company compensates the whole Sum Insured of any cover or item insured
You must commence the repairs, reinstatement, or reconstruction within a reasonable time after the date of damage or destruction. You must complete the repairs or reinstatement within a reasonable time, in any case not beyond 12 months from the date of damage or destruction or within such time as the insurer may allow.
It has to be noted that in all cases, the insurer will not pay more than the relevant Sum Insured
The policy pays only that extent of the amount that you need to bring the damaged property to the condition that is substantially the same as the previous, but not superior, better, or more extensive than its condition. It is up to you where you want to reconstruct the building; you may rebuild the new building on the same site or another site. If you reconstruct the new building on another site, the policy will not pay you more than what the insurer would pay to reconstruct on the same site.
Claim Settlement Process of Bharat Sookshma Udyam Suraksha Policy
For availing a smooth and easy claim settlement process you can follow the below-mentioned steps:• If your house building or the contents of it suffer any loss or damage, you need to intimate the insurer immediately, at least within 24 hours.
• A surveyor will be appointed on the behalf of the insurance company to assess the damage or loss and to make a report on that. It would be advisable to keep a copy of that report as it may help you in future reference
• All the proofs, witnesses, and required documents are needed to be submitted along with the duly filled claim form. • Preserve and collect evidence, take and preserve photographs and produce wherever required
• Your claim approval highly depends upon the report of the surveyor. So do not produce any wrong or misleading information. And, cooperate with the surveyor and the insurer
• Whenever required report to police, fire authorities, and appropriate concerned legal authorities and provide a copy of that to the surveyor and insurer.
• You must submit the claim form at the earliest opportunity but within 30 days from the date, you first notice the loss or damage.
• If the company finds the case fit and genuine, it would approve the claim, else the claim would be rejected.
How much reimbursement will I receive in the event of a covered loss?
If Your home building or articles or things within it are damaged, the policy will reimburse the amount You have spent on repairs. If Your home or articles or contents of it are lost or completely destroyed, the policy will pay the Sum Insured for that item. In the Policy Schedule, your amount of Sum Insured will be mentioned.
It has to be remembered that ‘underinsurance’ does not apply to the Bharat Griha Raksha policy. This is a special feature of this policy. Thus, if Your Sum Insured calculated on the basis of the information that you have provided to the insurer is less than the actual value at risk, the difference will not affect the amount payable.
• It is advisable to keep a copy of the Bharat Sookshma Udyam Suraksha Policy and to produce it before the insurer and the surveyor.
• You must submit the claim form at the earliest opportunity but within 30 days from the date, you first notice the loss or damage
• If the company finds the case fit and genuine, it would approve the claim, else the claim would be rejected