HDFC Ergo fire insurance and other related policies


2017-12-01 17:00:00 UTC


HDFC business


This post gives a brief overview on the fire & allied perils insurance policy, and associated extensions/package policies, offered by HDFC ERGO General Insurance company limited.

Business Suraksha package policy


As a business owner, insuring your business has many components to it. The HDFC ERGO business Suraksha Package is designed to take care of any risk your business may face, and provide a customisable cover.

This is a package policy which provides choice of all type of covers under one Policy. Perilwise can help you choose exactly what components you need in your insurance and adjust your premiums accordingly.

Benefits


This policy has the following sections, one or more of which can be chosen by the client depending upon the requirement. You can also head to our calculator to dynamically check quotes and how they vary.

  • Fire and allied perils(compulsory in almost all cases)
  • Earthquake and Terrorism(offered as add-on to Fire)
  • Burglary and housebreaking
  • Money Insurance – money in transit and money in safe
  • All risk cover for portable equipment
  • Baggage insurance
  • Fidelity Guarantee Cover
  • Plate Glass Cover
  • Machinery breakdown for equipment
  • Electronic Equipment Comprehensive Cover
  • Neon Sign/ Glow Hoardings
  • Consequential loss of profit (Fire)
  • Workmen’s Compensation
  • Public Liability

Standard Exclusions

  • Wilful acts or gross negligence
  • Destruction/Damage by own fermentation, natural heating or spontaneous combustion
  • Explosion/Implosion damage to boilers, damage caused by centrifugal forces
  • Forest fire
  • War and nuclear group of perils
  • Unspecified precious stones, cheques, currency, documents, etc. unless specifically declared
  • Consequential losses, if not opted
  • Theft during/after operation of peril
  • Terrorism, unless opted
  • Loss or damage due to wilful misconduct
  • Cessation of work, whether total or partial, and delay
  • Damage due to faulty design
  • Rectification of defective material and/or workmanship, inventory losses, etc.
  • Deductible as stipulated in the tariff

Burglary & Housebreaking Insurance Policy


Every organisation is at risk from burglary, housebreaking, etc. and such behaviour. To ensure that an organisation does not suffer from significant losses or damages from the same, HDFC ERGO gives you comprehensive financial coverage.

The policy broadly covers burglary, (which is theft following actual, forcible and violent entry of and/or exit from the premises) including hold-up risk and damage caused to premises.

Benefits

Policy provides coverage to contents/stocks/goods owned or held in trust and/or commission against loss or damage by burglary & house breaking (theft following upon an actual forcible and violent entry of and/or exit from the premises) or hold-up. Cover may be provided for cash and valuables also on specific request.

Policy also pays for damage caused to the premises resulting from burglary and/or housebreaking up to 5% of the Sum Insured for contents.

This policy also provides extensions(add-ons) to include, theft( items stolen without forcible entry), riots, strikes and malicious damage, and cover to multiple locations.

Sum insured must represent market value of the property insured which means current replacement value of the item as new at the time of loss or damage minus due allowance for betterment, wear & tear and obsoleteness

Exclusions

The policy does not cover loss and/or damage from

  • Gold or silver articles and other valuable goods, unless specifically insured.
  • Any goods lying in open unless specifically insured.
  • Infidelity of inmate or member of the Insured’s household or his business
  • Riot and strike, terrorist activities.
  • War, warlike perils
  • Ionising radiation or contamination by radioactivity
  • Nuclear Weapon material
  • Use of the key to the safe or any duplicate thereof belonging to the Insured
  • Loss or damage attributable to wilful /gross negligence

Consequential Loss Fire Insurance Policy


This Policy is offered as an add-on to the Standard Fire & Special Perils policy and cannot be taken on a standalone basis.

Your business is the sum of efforts made by you, your employees and all their families. Often, when affected by fire(or another insured risk under SFSP policy), the damage is felt beyond just the loss of property & contents, business is interrupted and losses are caused because of that as well.

This policy goes one step further and covers you for the losses incurred from disruption to your business following a fire. So now, you can catch a break knowing that the best people will support you through the financial consequences – the after effects of the devastation.

This policy basically helps you cover expenses till your business is restored to its pre-damaged level.

This policy is Ideal for SME’s and Corporates alike, those who need coverage for their business against uncontrollable situations that can devastate property and businesses. Talk to a Perilwise expert to know more!

Benefits
  • In the event of any interruption to your business as a result of damage to your premises due to any peril insured under the Fire Material Damage Policy, this policy enables you to recover:
  • Loss of Gross Profit due to a reduction in turnover
  • Increased Cost of Working incurred in minimising that loss of Gross Profit
Add-ons & Extensions
  • Wages
  • Lay-off and Retrenchment Compensation and Notice Wages Liability
  • Auditor’s Fees
  • Supplier’s Extension
  • Customer’s Extension
  • Public Utilities Extension
  • Terrorism

Sum insured is selected on basis of:

Your Sum Insured for Consequential loss due to Fire cover is based on the estimated annual gross profit of your business as per the previous year’s accounts.

A Policyholder is entitled to return of premium (not exceeding 50% of the premium paid) in case the Gross Profit earned during the financial year concurrent with the period of insurance is less than the Sum Insured.

Exclusions

Standard fire Exclusions apply. There is a compulsory deductible.

Fire & Special Perils Insurance Policy


As a business owner, you’ve put a lot of time, hard work and considerable money into building up your business. However, misfortune strikes when you least expect it. Almost anything can happen at any time – a short circuit can reduce your assets to ashes, a burst pipe can flood your premises, a riot or act of terrorism can wipe away years of effort…

To help you protect your business against such uncertainties, HDFC ERGO provides one of the best Fire & Allied Perils products in the industry. This policy provides you with comprehensive protection backed by sound financial capability.

This policy is Ideal for SME’s and Corporates alike, those who need coverage for their business against uncontrollable situations that can devastate property and businesses.

Fire & Special Perils Policy is one of the most important policies for a business. Calculate your premium with our online Fire policy premium calculator now!

Policy rates and terms are governed by the All India Fire Tariff. The normal policy period is 12 months though a long-term policy of up to 10 years is available for houses, at an attractive discount.

Exclusions

The Standard policy does not cover your business against the following

  • Wilful acts or gross negligence
  • Destruction/damage by own fermentation, natural heating or spontaneous combustion
  • Explosion/Implosion damage to boilers, damage caused by centrifugal forces Forest fire
  • Unspecified precious stones, cheques, currency, documents, etc. unless specifically declared
  • Consequential losses
  • Theft during/after operation of peril
  • Terrorism

Machinery Breakdown Insurance Policy


When the production of a factory grinds to a halt because of breakdown, it can result in huge losses; especially when delivery schedules are tight and the penalties are strict.

The resulting downtime, lost production and loss of reputation can be overwhelming. HDFC ERGO’s Machinery breakdown Policy will provide the ideal safeguard for your organisation. This policy is offered as an extension in Business Suraksha policy, as well as on a standalone basis. Perilwise has an online service that allows you to customise your business insurance policy with many extensions, to suit your needs.

Benefits
  • The policy broadly covers loss due to all kinds of accidental, electrical and mechanical breakdowns as a result of internal and external causes. You are covered during the time the machinery is in operation, at rest, in the process of being dismantled/overhauled or during subsequent re-erection at the same premises.
  • If specifically requested, you can also cover the machinery foundations, masonry, brickwork as well as oil in transformers from unforeseen and sudden physical loss or damage, other than specified excluded perils and forms of damage.
Extensions & Add-ons
  • Air Freight
  • Express Freight (excluding Air Freight), Overtime and Holiday Wages
  • Insured’s Own Surrounding Property
  • Third Party Liability

The sum insured value proposed for insurance should be equal to the new replacement cost, including freight, erection cost and customs duty, if any.

Exclusions

The policy does not cover loss and/or damage from:

  • Fire and allied perils(covered if you take Machinery Breakdown as an extension)
  • Theft
  • Overloading experiments
  • Wilful acts or gross negligence
  • Flaws that gradually develop and deterioration from normal use
  • Compulsory excess

Money Insurance Policy


Money is central to an organisation’s workings. From profits to costs – money covers every area and goes through many transactions.

The Money Insurance Policy of HDFC ERGO broadly covers loss of money in transit by the insured or insured’s authorised employee(s) or money held in safe in the Insured’s premises. offered in addition to standard fire policy

‘Money’, for the purposes of this policy shall mean and include Cash, Coins, bank draft, Currency Notes, Cheques, Traveler’s Cheque, Postal order, Money order, Pay order and Current Postage Stamps. ‘Bank’ shall mean and include bank of every description, Post Office, Government Treasury.

Benefits

Policy provides coverage against:

  • loss of cash or currency whilst in transit
  • Loss of cash or currency in your premises due to accident or misfortune.
  • Cost of replacement or repair of your safe or strong room at your premises in case it gets damaged by thieves or burglars.
  • Terrorism(offered as an extension)

Sum insured is based on Actual turnover for Money in transit, Single Carrying Limit and Cash In Safe Limit

Exclusions


The policy does not cover loss and/or damage due to:

  • Shortage due to error or omission
  • Loss of money entrusted to any person other than insured or an Authorized employee or Directors of the Insured entity.
  • Infidelity of Insured or his employee except loss due to fraud or dishonesty of the cash carrying employee of the Insured.
  • Loss occurring on the premises, after business hours, unless the money is in a locked safe or strong room.
  • Loss occasioned by Riot, Strike and Terrorist Activity.
  • Money carried under contract of affreightment
  • Theft of money from unattended vehicle
  • Loss of or damage to money in transit by post
  • Loss of money collected by Authorized employee/s of the Insured whilst in transit to the Insured premises or bank in their personal custody for more than 48 hours
  • Loss of money from safe or strong room following use of the key to the safe or strong room or any duplicate thereof belonging to the Insured
  • War and warlike perils
  • Ionizing radiation or contamination by radioactivity, Nuclear Weapon material
  • Consequential loss or legal Liability of any kind

Neon Sign Insurance Policy


Advertisement and Publicity have become an integral part of business and trading.

Advertisement by way of Neon Sign hoarding occupies a very important place in this respect. However, such signs are in public places and are exposed to loss or damage arising out of fire, natural perils, riot or strike, arson and the like due to their location and prominence.

This policy covers Neon Sign against loss or damage due to fire, theft or fortuitous events.

The sum insured set for this policy should be on reinstatement value.

Benefits

Policy provides coverage against loss or damage to Neon Sign by:

  • Accidental external means, or
  • Fire and/or lightning, external explosion, theft, or
  • Malicious act
  • Cover against legal liability for
  • Death or bodily injury to any person
  • Damage to property of third party caused by the Neon Sign
  • Claimant’s law costs incurred with its consent.
  • Terrorism(offered as an extension)
Exclusions

The policy does not cover loss and/or damage due to

  • Contractual Liability
  • Any consequential loss
  • Convulsions of nature like flood, hurricane, tornado, volcanic eruption, earthquake
  • War and allied perils
  • Riot and Strike
  • War and warlike perils
  • Ionizing radiation or contamination by radioactivity, Nuclear Weapon material

Plate Glass Insurance Policy


From showrooms, window displays to offices and more – glass is expensive and fragile. It can be shattered by a random act of violence / riots and more. The Plate Glass Insurance from HDFC ERGO covers accidental breakage of glass whilst situated at the Insured's premises from any cause other than those specifically excluded in the Policy.

The policy is ideally suited for all business establishments that have plate glass installed to enhance their visual and aesthetic appeal like showrooms, shopping complexes, restaurants, hotels, theatres, stadiums, shops, cafes, etc. This policy is best taken as an extension to a standard Fire & Special Perils policy, to provide a comprehensive cover to your glass. Sum insured should be the Intrinsic Value of Glass, meaning the cost to replace the glass, minus depreciation.

‘Glass’ for this policy, means fixed plain glass and mirrors in or on the premises of the Insured where such glass is situated, excluding painting, tinting, embossing or ornamental works on the Glass (unless expressly stated and its value included in the Sum Insured). Frames and framework is included, provided it is expressly stated in the Schedule and its value included in the Sum Insured.

Benefits
  • Policy covers accidental breakage to any of the Glass.
  • Terrorism is offered as an add-on
Exclusions

The policy does not cover loss and/or damage due to:

  • Deductible Excess stated in the Schedule to the policy
  • Breakage or damage during removal, alterations and/or repairs in or about the premises
  • Disfiguration or scratching or damage of Glass other than by way of a fracture extending through the entire thickness of Glass
  • Breakage of Glass, which is not completely and securely fixed
  • Cracked or imperfect Glass
  • Expenses incurred for removal or replacement of any fittings or fixtures to replace Glass
  • Any loss or damage arising from the interruption of or delay in the Insured's business during the time intervening between occurrence of any breakage and reinstatement of such Glass
  • Terrorism

Portable Electronic Equipment Insurance Policy


Electronic equipment can be very expensive and is easily susceptible to theft and damage. To protect your interests, HDFC ERGO’s Portable Electronic Equipment policy covers accidental damage and breakdown including fire, theft, robbery and malicious damage to new portable electronic equipment such as broadcasting, film, camera, audio-visual, diagnostic and medical equipment. Sum insured must be set on replacement value.

Benefits

Policy provides cover for:

  • Fire
  • Electrical and Mechanical breakdown
  • Theft, Robbery and Riot, Strike, Malicious Damage
  • Fortuitous or Accidental damages
  • Worldwide Coverage(add-on cover, must be opted for)
Exclusions

The policy does not cover loss and/or damage from

  • War, and war like perils
  • Acting on behalf of or relating to any political organisation,
  • Requisition or destruction or damage by order of any government de-jure or de-facto or any public, municipal or local authority
  • Nuclear Reaction, Nuclear radiation or radioactive contamination
  • Wilful act or wilful negligence of the Insured or his representative
  • Derangement of the Insured property not accompanied by damage otherwise covered by this policy
  • Pre-existing faults or defects at the time of commencement of the insurance
  • Wear and tear, cavitation, erosion, corrosion, incrustation, gradual deterioration due to atmospheric conditions
  • Normal maintenance of the insured items
  • Loss of or damage to hard disk & read-write head whilst in transit except when caused by an insured damage to the whole computer
  • Scratches on painted polished or enamelled surfaces
  • Any unexplained disappearance of the Insured item
  • Terrorism

Machinery Loss of Profit Insurance Policy


Your business is an extension of you. It is the sum of the efforts and aspirations of your staff and your near and dear ones.

When it comes to protection of your business and assets, insurance is necessary to get you back on your feet following any mishaps or incidents. Loss of profit covers go one step further and cover you for the losses you incur from disruption to your business following a fire. So now you can rest assured knowing that the best people will support you through the financial consequences – the after effects of the devastation.

HDFC ERGO Machinery Loss of Profit Insurance Policy will help you restore your business to its pre-damaged level.

This policy is Ideal for SME’s and Corporates alike, those who need coverage for their business against uncontrollable situations that can devastate machinery and businesses.

This cover is offered as an extensions or add-on to Machinery Breakdown Insurance, and not standalone. It can also be availed as part of a package policy(as long as machinery breakdown is selected)

Benefits

In the event of any interruption to your business because of damage to your machineries due to any peril insured under the Machinery Breakdown Policy, this policy enables you to recover:

  • Loss of Gross Profit due to a reduction in turnover
  • Increased Cost of Working incurred in minimising that loss of Gross Profit
  • Terrorism(offered as an add-on)
Sum Insured & Premium

Sum insured should be gross profit (= net profit + standing charges).

Premium is based on the following factors:

  • Annual Gross Profit
  • Time required for repair/ or replacement of equipment’s
  • Spare parts availability and criticality of equipment
  • Indemnity Period
Exclusions
  • Wilful act or wilful neglect or gross negligence
  • Loss or damage caused by any existing faults or defects at the time of commencement of this insurance within the knowledge of the insured or his responsible representatives.
  • Shortage, destruction, deterioration and spoilage of or damage to raw materials, semi-finished or finished products or catalyst or operating media (such as fuel, lubricating oil, refrigerant, heating media and the like) even if the consequence of material damage to an item indicated in the list of machinery insured is involved.
  • Any extension of the normal repair period for more than 4 weeks because of –
    • The inability to secure or delays in securing replacement parts, machines or technical services.
    • The inability to carry or delays in carrying out repairs.
    • The prohibition to operate the machinery due to import and/or export customs & other restrictions or by statutory regulations.
    • Transport of parts to and from the Insured’s premises.
  • Alterations improvements or overhauls being made while repairs or replacements of damaged or destroyed property are being carried out.
  • Political risks
  • Nuclear reactions
  • Nuclear radiation or radioactive contamination
  • Deductible

Jewellers Package Insurance Policy


HDFC Ergo offers a Jeweller’s Package Insurance Policy which covers risk of Gold and valuable’s trade specific risks.

Other than coverage for gold, diamonds and jewellery, it also provides various other covers, like:

  • Contents Comprising
    • furniture, fixtures, interior decorations,
    • documents, personal effects,
    • building,
    • accidental death / disablement risks for employees,
    • glass and sanitary fittings against breakage,
    • liability risk towards public and employees,
    • money in transit and at premises,
    • electronic equipment,
    • neon signs, hoardings, equipment and Consequential Loss (Fire).

The policy has been divided into 13 Sections with various items within each Section to provide cover as per your business requirement.

Benefits

Jeweller’s Package Insurance Policy is designed to cover risk of Gold/ valuable’s trade specific risks. HDFC Ergo Jewellery Package Policy covers the following sections, one or more of which can be chosen by you depending upon the requirement.

  • Stock in Insured Premises Including Goods in Trust or On Commission.
  • Stock in Custody Including Goods in Trust or On Commission
  • Stock in Transit Including Goods in Trust Or On Commission
  • Stock In Exhibitions Including Goods in Trust or on Commission
  • Coverage of Building & Assets of the Insured Premises
  • Coverage of Fixed Glass and related fittings in the Insured Premises
  • Coverage of Neon & illuminated Signs, Hoardings at the Insured Premises
  • Electronic Equipment
  • Public Liability at the Insured Premises
  • Coverage of Workmen’s Compensation for workers at the Insured Premises
  • Coverage of Money in transit or at the Insured Premises
  • Consequential Loss (Fire)

Sum insured is on Reinstatement Value / Market value/ Replacement Value - as per section applicable. The policy is subject to a compulsory excess which depends upon individual section. Opting for a higher voluntary excess qualifies you for a discount on the premium payable.

Exclusions

The Standard policy does not cover your business against the following –

  • Wilful acts or gross negligence
  • Losses arising in other than Territorial Limits specified in Schedule
  • Destruction/Damage by own fermentation, natural heating or spontaneous combustion
  • Explosion/Implosion damage to boilers, damage caused by centrifugal forces
  • Forest fire
  • War and nuclear group of perils
  • Unspecified precious stones, cheques, currency, documents, etc. unless specifically declared
  • Consequential losses, if not opted
  • Theft during/after operation of peril
  • Terrorism
  • Shortage of Money due to error or omission

Fidelity Guarantee Insurance Policy


Frauds and dishonesty in contractual obligations are a part of the business world. To safeguard your interests from unscrupulous people HDFC ERGO’s Fidelity Guarantee Insurance policy ensures that organisations do not suffer because of a few bad apples among them.

This policy broadly covers monetary loss sustained because of any act of fraud or dishonesty committed by the employees during performance of their duties.

This Policy covers financial loss due to any act of fraud / dishonesty committed by your employee on or after the date of commencement of this policy.

The cover is also valid if incident happened during policy period but was discovered

  • after the expiration of the policy (within 12 months)
  • after the death, dismissal or retirement of the Employee

whichever occurs first.

Exclusions
  • Outside territorial limits
  • Losses not falling within retrospective date
  • Losses incurred before policy inception date
  • Consequential losses
  • Wilful Acts or Gross negligence

Information Technology Package Insurance Policy


With the emerging growth of Information Technology sector India, the industry seeks combination of various products under one roof e.g Property, Legal Liability and Marine. To cater to this segment, HDFC ERGO has a product called Information Technology Package Policy Cover which provides almost 14 different types of coverage under one policy.

Information Technology Package Policy by HDFC ERGO is comprehensive package policies designed exclusively for IT Industry as an umbrella cover under one policy. Coverage under this policy can be tailored as per the individual requirements, providing all essential covers as standard with the option to select additional cover if required.

Coverage under this policy is broadly classified into 4 sections, enabling you to choose and customize protection to your specific requirements. Perilwise’s Calculator allows you to do that online, try it out now!

Property Insurance

Coverage under this section of the policy extends to include:

  • Property damage due to fire, lightning, explosion, aircraft damage, riots, storm, impact damage, land slide, bursting, missile testing operation, leakage and bush fire.
  • Loss due to business interruption
  • Breakdown of electrical and mechanical appliances with expenses for loss minimization and claim preparation cost up to limit opted.
  • Loss or damage to electronic appliances against accidental damage or breakdown with expenses for loss minimization and claim preparation cost up to limit opted.
  • Loss or damage caused to the Insured’s property due to burglary or housebreaking
  • Accidental breakage of Glass or Sanitary fittings
  • Tools such as Neon sign/ Glow sign /Hoarding against risk such as damage by accidental external means, fire, lightning, external explosion, theft of whole sign, riot, strike etc.
  • Loss or damage caused to portable electronic equipment belonging to insured or being used by a permanent employee of the insured for business of the insured.
  • Portable electronic equipment like laptops and mobiles- Insured property at work or at rest or whilst being used by the permanent employee(s) of the Insured on journey to places by train or road or air anywhere within the territorial limits for business or profession of the Insured
  • Loss of money relating to business or profession of the insured due to accident or misfortune
  • Direct pecuniary loss caused by dishonest acts/infidelity of employees, who are in the permanent employment.
  • Loss of baggage due to accident or misfortune suffered by the insured whilst on journey.
  • Personal injury or property damage to third party
  • Legal Expenses
  • Employers’ Compensation - If employee or employees of the insured sustained any bodily injury
Marine Inland/ Import Transit Insurance
  • Covers loss of or any damage caused to the insured’s goods whilst in course of transit by road/air/sea.
  • Coverage under this section also extends to include loss of or damage caused while goods being transported on vehicle owned /hired/operated by the insured.
Add-ons and Extensions
  • Subject to charge of an additional premium, terms and conditions Information Technology Package Policy by HDFC ERGO may also extend to provide following coverages
  • Medical Expenses for treatment of employee’s injury
  • Occupational Diseases contracted due to employment
  • Accidental external damages to cover insured property due to accident from any fortuitous cause
  • Additional Marketing Expenditure to reduce loss
  • Terrorism Extension

It is recommended that your assets be insured on a replacement / reinstatement cost basis to get full protection following a loss.

Exclusions
  • Loss and/or damage arising out of War, Riot, Strike, Civil Commotion, Terrorism
  • Loss or damage due to nuclear perils
  • Damage to property due to Pollution and contamination
  • Loss or damage due to wear and tear, gradual deterioration or slowly developing flaws.
  • Consequential Loss (unless specifically covered)
  • Willful Misconduct or Negligence
  • Contractual Liability
  • Product Recall
  • Professional Liability
  • Libel & Slander
  • Sexual Harassment
  • Glass breakage while premises is under construction or while the glass is being removed
  • Fines, penalties, punitive or exemplary damages or any other damages resulting from the multiplication of compensatory damages
  • Loss and/or damage to jewellery, precious stones, money, bullion or documents of any kind unless specifically declared

Note: For complete details on coverage, terms, conditions and exclusion, please read the policy wordings

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