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Kshema Industrial All Risk Policy
The Kshema Industrial All Risk (IAR) Insurance provides comprehensive protection for industrial and manufacturing establishments against sudden and unforeseen physical loss or damage to insured property or financial losses suffered due to any interruptions in the business due to any cause not specifically excluded under the policy.
The policy offers wider coverage than traditional named-peril policies, helping businesses safeguard their assets and maintain operational continuity
- Comprehensive "All Risk" protection for industrial assets
- Covers accidental physical loss or damage from unforeseen events
- Protects buildings, plant & machinery, stocks, furniture, fixtures, fittings and other insured assets
- Compensates against financial losses / loss of revenues arising from property damage
- Supports business continuity and faster recovery after incidents
- Flexible coverage options and customisable extensions based on industry requirements
Why Choose Kshema Industrial All Risk Policy?
Comprehensive All Risk Protection
Provides broad coverage against sudden and unforeseen physical loss or damage to insured industrial property and financial losses suffered due to Business interruption from causes not specifically excluded under the policy.
Protection for Critical Business Assets
Covers a wide range of industrial assets including buildings, plant & machinery, stocks, furniture, fixtures and fittings.
Financial Protection Against Property Damage
Helps minimise the financial impact of accidental damage and other unforeseen events affecting industrial operations.
Supports Business Continuity
Helps businesses recover faster from insured losses and resume operations with minimal disruption.
Flexible Coverage Extensions
Offers optional add-on covers and extensions to meet specific industry and business requirements.
Types of Assets Covered
- Buildings including plinth and foundation
- Plant and Machinery
- Stocks and Raw Materials
- Finished Goods and Work-in-Progress
- Furniture, Fixtures and Fittings
- Electrical Installations and Equipment
- Office Contents and Other Assets declared under the policy
What Is Covered Under This Policy?
Insured Property
Buildings & Foundations
Plant & Machinery
Stocks & Raw Materials
Finished Goods
Furniture, Fixtures & Fittings
Electrical Installations
Office Contents & Other Declared Assets
Perils and Unforeseen Events
Fire & Lightning
Explosion & Implosion
Aircraft Damage
Riot, Strike & Malicious Damage
Flood, Storm & Cyclone
Impact Damage
Subsidence, Landslide & Rockslide
Bursting & Overflowing of Water Tanks and Pipes
Accidental Damage
Optional Add-On Covers
The policy can be extended with optional covers such as:
Earthquake (Fire & Shock)
Terrorism Cover
Escalation Clause
Removal of Debris
Architects', Surveyors' & Consulting Engineers' Fees
Temporary Removal of Stocks
Spontaneous Combustion
Spoilage Material Damage
Leakage & Contamination Cover
Additional Customs Duty
Impact Damage due to Insured's Own Vehicles
Omission to Insure Additions, Alterations or Extensions
Other industry-specific extensions as agreed
Damages to customer's premises
Damages to suppliers’ premises
*Add-ons are available subject to underwriting and policy terms.
Period of Coverage
- The policy is generally issued for a period of one year.
- Policy can be renewed annually.
- The policy may be cancelled in accordance with policy terms and applicable premium refund provisions.
Exclusions
Losses and Expenses Not Covered
- Deductibles or excesses specified in the policy schedule
- Wear and tear, gradual deterioration and depreciation
- Costs of rectifying faulty workmanship, design or material defects
- Any restrictions on reconstruction or operation imposed by any public authority.
Perils Not Covered
- War, invasion and allied perils
- Nuclear risks and radioactive contamination
- Wilful acts or gross negligence of the insured
- Pollution and contamination unless resulting from an insured event and specifically covered .
Property Not Covered
- Property not declared and insured under the policy
- Money, securities, manuscripts and documents unless specifically covered
- Land and standing crops unless specifically agreed
- Property under construction unless covered under a separate policy
Important Points to Note
- Coverage is subject to the terms, conditions, and exclusions of the policy.
- Deductibles or excesses specified in the policy schedule will apply to claims.
- Certain add-on covers may require additional premium.
- Claims must be reported as per policy requirements for timely assessment and settlement.
- Any deductible specified in the policy schedule will apply to each claim under relevant covers.
Frequently Asked Questions
1. What perils are covered in the IAR policy?
The IAR policy does not include any perils, In the policy, only excluded properties and excluded causes are stated. Any damage caused by an accident that is not stated as exclusion is covered.
2. In addition to our IAR policy, do we need a separate burglary policy?
Burglary is not excluded and is therefore covered by the lAR insurance.
3. How many sections are there under this policy?
There are Two sections under this policy:
Section I: Material Damage
Section II: Business Interruption
4.What are the coverages under Section I of this policy?
Under Section I:
- Fire and all Special Perils
- Burglary, Theft
- Machinery Breakdown/Boiler Explosion/Electronic Equipment Insurance
5. What are the coverages under Section II of this policy?
Under Section II:
- Business Interruption (Fire and all Special Perils)
- Business Interruption (Machinery Breakdown) OPTIONAL
6.What are the benefits of using an IAR policy rather than distinct SFSP, MBD, and FLOP policies?
It provides broader cover. The IAR coverage covers perils such as unintentional damage and burglary. The rate of machinery breakdown is low, and IAR policy does not allow for depreciation.
7.Can I cover livestock in my lAR policy together with other assets?
The IAR policy does not cover livestock.
8. Does depreciation apply to breakdown claims such as MBD or EEl?
IAR policy covers assets on Reinstatement basis. For breakdown claims such as MBD or EEl policies, depreciation is not applicable.
9. While relocating our machinery to our on-site facility for overhauling, it is accidentally damaged. Is it protected?
Yes. The IAR coverage covers damage that occurs during transit within the risk premises.
10.Is MLOP a mandatory cover in the IAR policy?
No. MLOP is an optional cover.
11. Is FLOP a Mandatory cover?
Yes. FLOP is a Mandatory cover.
12. Who can take Industrial All Risk Insurance Policy?
Industrial risks in India, excluding risks accessible under the Petrochemical Tariff are
eligible to take IAR policy.This policy offers comprehensive coverage against all perils
and risks, except those explicitly excluded within the policy terms.
13. Is collision-related damage to motor vehicles covered?
The IAR policy does not cover vehicles that are licensed for road use.
14. Is Underinsurance applicable in IAR policy?
Under Insurance is applicable in an IAR policy if the policy sum insured is less than 85% of the value at risk.
15. Is there any discount available for voluntary deductible?
Yes,discount is available based on range of Voluntary deductible opted.
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