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Industrial All Risk Insurance (IAR)

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A comprehensive coverage for the Industrial risks having overall Sum Insured of Rs. 100 crores and above in one or more locations in India. The Policy covers not only the Physical Losses or damage but also consequential losses arising out of the business interruption due to accidental unforeseen physical loss or damage to property.

  • Coverage Includes:
    • Fire and Special Perils including Earthquake
    • Consequential Loss (Fire)
    • Machinery Breakdown, Boilers Explosion, Electronic Equipment
    • Machinery Loss of profit (optional)
    • Terrorism Damage (optional)
  • General Exclusions
    • Exclusion under Section 1 (Material Damage)
      • Faulty or defective design material or workmanship
      • Interruption of the water supply, gas, electricity or fuel system or failure of the effluent disposal system
      • Collapse or cracking of building
      • Act of fraud or dishonesty
      • Larceny
      • Coastal or river erosion
      • Normal settlement or bedding down of new structures
      • Any willful act or willful negligence on the part of the insured
      • Cessation of work, delay
      • War invasion or war like situation
      • Nuclear weapons/ionizing radiations or contamination by radioactivity.
    • Exclusion under Section 2 (Business Interruption)
    • This policy doesn't cover loss resulting from interruption of or interference with business directly or indirectly attributable to:
    • Compulsory Excess
    • Material Damage Claims-Deductibles shall be 5% of the claim amount subject to minimum of Rs.5 Lakhs and Maximum of Rs. 50 Lakhs. Business Interruption Claims- Deductibles shall be three days Gross Profit subject to minimum of Rs. 5 Lakhs and maximum of Rs. 50 lakhs.
    • Voluntary Excess
    • Material Damage Claims- Insured may opt for higher excess for which suitable discounts in premium may be considered ranging from 10% to 25% Business Interruption Claims- Range for the discounts is from 5% to 25% for opting higher excess.
  • Rating
    • Material Damage Section:
      • FIRE - Rates as per the Standard Fire Special Perils Policy
      • Machinery Breakdown - 2.50%o (Per 1000)
    • Loss Of profit Section:
      • FLOP - as per Fire (LOP) Tariff less 10% discount
      • MLOP - to be referred to TAC.
    • NB: Based on favorable claims ratio, a discount up to 25% can be allowed.