ROYAL SUNDARAM GENERAL INSURANCE CO.

LIMITED
(formerly known as Royal Sundaram Alliance Insurance Company Limited)
Regd Office 21 Patullos Road, Chennai – 600 002.
Corporate Office: Vishranthi Melaram Towers, No. 2/319, Rajiv Gandhi
Salai (OMR),Karapakkam, Chennai – 600 097
Call: 1860 425 0000. Email – customer.services@royalsundaram.in
Website: www.royalsundaram.in
IRDA Registration No. 102 | CIN – U67200TN2000PLC045611

ADVANCE LOSS OF PROFITS INSURANCE

POLICY(CONSTRUCTION)
In consideration of the Insured named in the Schedule hereto having paid to the
ROYAL SUNDARAM GENERAL INSURANCE CO. LIMITED (formerly known as Royal Sundaram
Alliance Insurance Company Limited) (hereinafter called the Company) the Premium mentioned in
the Schedule, the Company agrees subject to the Special Conditions and Exclusions contained
herein or endorsed or otherwise expressed hereon and also to the conditions and exclusions
contained in the Contractors’ All Risks or Erection All Risks policy covering the interest of the
Insured in the Contract Works specified in the Schedule, (hereinafter called the Contract Works
policy)

That if the Contract Works or any part thereof suffer any loss or damage indemnifiable under the
Contract Works Policy (such loss or damage being hereinafter termed Damage) in such manner as
to interrupt or to interfere with the carrying out of the Contract and thereby to cause a delay to
the Scheduled Date of Commencement of the Business, then the Company will pay to the Insured
in respect of each item of the Schedule hereto the amount of loss resulting from such interruption
or interference in accordance with the provisions contained herein

Provided that

1) such Damage occurs, at any time after payment of the Premium, during the Period of
Insurance.

2) the Insured under this policy is named as the Principal in and is one of the parties constituting
the Insured in the Schedule to the Contract Works policy.

3) at the time of the happening of the Damage there shall be a Contract Works policy in force
covering the interest of the Insured in the Contract Works, and that payment shall have been
made or liability admitted thereunder in respect of indemnification for such Damage.
However, this proviso shall not apply where payment is not made under the Contract Works
policy solely due to the operation of a provision of the Contract Works policy excluding liability
for losses below a specified amount.

4) the liability of the Company shall in no case exceed in respect of each item the sum expressed
in the Schedule to be insured thereon nor in the whole the Total Sum Insured hereby or such
other sum or sums as may hereafter be substituted thereof by memorandum duly signed by
or on behalf of the Company.

SPECIFICATION

The insurance under Item No. 1 is limited to loss of Gross Profit due to a) Reduction in Turnover
and b) Increase in Cost of Working and the amount payable as indemnity thereunder shall be:-

(a) in respect of Reduction in Turnover: the sum produced by applying the Rate of
Gross Profit to the amount by which the Turnover during the Indemnity Period
shall, in consequence of the Damage, fall short of the Standard Turnover

(b) in respect of Increase in Cost of Working: the additional expenditure necessarily

and reasonably incurred for the sole purpose of avoiding or diminishing the
Reduction in Turnover which but for that expenditure would have taken place
during the Indemnity Period in consequence of the Damage, but not exceeding
the sum produced by applying the Rate of Gross Profit to the amount of the
reduction thereby avoided

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 ROYAL SUNDARAM GENERAL INSURANCE CO. LIMITED
(formerly known as Royal Sundaram Alliance Insurance Company Limited)
Regd Office 21 Patullos Road, Chennai – 600 002.
Corporate Office: Vishranthi Melaram Towers, No. 2/319, Rajiv Gandhi
Salai (OMR),Karapakkam, Chennai – 600 097
Call: 1860 425 0000. Email – customer.services@royalsundaram.in
Website: www.royalsundaram.in
IRDA Registration No. 102 | CIN – U67200TN2000PLC045611

less any sum saved during the Indemnity Period in respect of such of the charges and expenses
of the Business payable out of Gross Profit as may cease or be reduced in consequence of the
Damage

Provided that if the Sum Insured hereon be less than the sum produced by applying the Rate of
Gross Profit to the Annual Turnover, the amount payable shall be proportionately reduced.
And provided further that if during the Indemnity Period goods shall be sold or services shall be
rendered elsewhere than at the Premises for the benefit of the Business, either by the Insured or
by others on the Insured’s behalf, the money paid or payable to the Insured in respect of such
sales or services shall be brought into account in arriving at the Turnover during the Indemnity
Period.

The insurance under Item No. 2 is limited to the reasonable charges payable by the Insured to
their auditors for producing and certifying any particulars or details contained in the Insured’s
books of account or other business books or documents or such other proofs, information or
evidence as may be required by the Company under the terms of Condition 2 of this policy. Any
particulars or details contained in the Insured’s books of account or other business books or
documents which may be required by the Company under Condition 2 of this policy for the
purpose of investigating or verifying any claim hereunder may be produced and certified by the
Insured’s auditors and their certificate shall be prima facie evidence of the particulars and details
to which such certificate relates.

Definitions

Period of Insurance: The period shown as such in the Schedule, and terminating on the date
shown in the Schedule or, in respect of any part of the Contract Works or
the whole thereof, on such earlier date as cover during the Construction
Period or the Erection Period in respect of such part of the Contract Works
or the whole thereof ceases under the Contract Works policy.

Gross Profit: The amount by which the Turnover exceeds the amount of the Specified
Working Expenses.

Scheduled Date of
Commencement of The date shown as such in the Schedule and on which
the Business: Business is due to become operational.

Delay: The period of time between the Scheduled Date of Commencement of the
Business and the date on which the Business became or would have
become operational.

Turnover: The amount of money paid or payable to the Insured for goods sold or
services rendered in the course of the Business at the Premises.

Indemnity Period: The period beginning at the end of the Waiting Period specified in the
Schedule and ending not later than the duration of the Maximum
Indemnity Period (specified in the Schedule) thereafter, during which the
results of the Business are affected in consequence of the Damage.

Rate of Gross Profit: the rate which, had the based upon the estimated production
Delay not occurred, would have been earned on programme of the business, and costs
the Turnover during the Indemnity Period. and prices relating thereto, to which
Annual Turnover } such adjustments shall be made as may
be necessary to provide for the trend of
The Turnover, which, had, the Delay not the Business and for variations in or
} special circumstances affecting the
occurred, would have been earned during the

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 ROYAL SUNDARAM GENERAL INSURANCE CO. LIMITED
(formerly known as Royal Sundaram Alliance Insurance Company Limited)
Regd Office 21 Patullos Road, Chennai – 600 002.
Corporate Office: Vishranthi Melaram Towers, No. 2/319, Rajiv Gandhi
Salai (OMR),Karapakkam, Chennai – 600 097
Call: 1860 425 0000. Email – customer.services@royalsundaram.in
Website: www.royalsundaram.in
IRDA Registration No. 102 | CIN – U67200TN2000PLC045611

12 months after the Scheduled Date of Business either before or after the Delay
Commencement of the Business. } or which would have affected the
Business had the Delay not occurred, so
Standard Turnover that the figures thus adjusted shall
represent as nearly as may be
The Turnover which, had the Delay not reasonably practicable the results which
occurred, would have been earned during the but for the Delay would have been
Indemnity Period. obtained during the relative period after
the Delay.
EXCEPTIONS

The Company shall not be liable in respect of:

1. any delay in the construction work directly due to:

a) loss or damage covered under the Contract Works policy by endorsement, unless it is
specifically agreed in writing by the Company that such loss or damage shall be deemed
to be Damage for the purposes of this policy.
b) loss of or damage to any property other than the Contract Works, whether such property
is covered under the Contract Works policy or not.
c) earthquake, volcanic eruption or tsunami.
d) loss of or damage to construction work of a prototype nature, unless specifically agreed
by the Company in writing.
e) loss of or damage to construction plant, machinery or equipment.
f) any loss arising from abandonment from any cause whatsoever of any development,
project or contract work undertaken or contracted for by the Insured.

2. any delay directly or indirectly attributable to:

a) shortage, destruction, deterioration of or damage to any materials or operating media

necessary for conducting the Business.
b) any restrictions on reconstruction or operation imposed by a public authority.
c) alterations, additions, improvements, rectification of defects or faults or elimination of any
deficiencies carried out during the repair or replacement of destroyed or damaged items.
d) non-availability of funds for the repair or replacement of destroyed or damaged items.
e) repair of any items which do not form part of the Contract Works referred to in the
Schedule hereto, even if such repair is in consequence of loss of or damage to an item
which forms part of the Contract Works referred to in the Schedule hereto.

3. any loss due to penalties or fines, lack of performance, loss of contract, breach of contract,
late completion or non-completion of orders.

4. any loss resulting from Damage occasioned by or happening through or in consequence,

directly or indirectly, of any of the following occurrences, namely:-

a) war, invasion, act of foreign enemy, hostilities or warlike operations (whether war be
declared or not), civil war.
b) mutiny, civil commotion assuming the proportions of or amounting to a popular rising,
military rising, insurrection, rebellion, revolution, military or usurped power.
c) confiscation, nationalization, commandeering, requisition or destruction by or under the
order of any government de jure or de facto or by any public or local authority.
d) the acts of any person or persons acting on behalf of or in connection with any
organization with activities directed towards the overthrowing or influencing of any
government de jure or de facto by force or violence.

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 ROYAL SUNDARAM GENERAL INSURANCE CO. LIMITED
(formerly known as Royal Sundaram Alliance Insurance Company Limited)
Regd Office 21 Patullos Road, Chennai – 600 002.
Corporate Office: Vishranthi Melaram Towers, No. 2/319, Rajiv Gandhi
Salai (OMR),Karapakkam, Chennai – 600 097
Call: 1860 425 0000. Email – customer.services@royalsundaram.in
Website: www.royalsundaram.in
IRDA Registration No. 102 | CIN – U67200TN2000PLC045611

In any action suit or other proceeding where the Company alleges that by reason of the
provisions of this condition any loss or damage is not covered by this policy, the burden of
proving that it is covered shall be upon the Insured.

5. any loss, damage or delay directly or indirectly caused by, arising from, or contributed to or
aggravated by:

a) ionizing radiations or radioactive contamination from any nuclear fuel or nuclear waste or
from the combustion of nuclear fuel.
b) the radioactive, toxic, explosive or otherwise hazardous or contaminating properties of
any nuclear installation, reactor or other nuclear assembly or nuclear component thereof.
c) any weapon of war employing atomic or nuclear fission or fusion or any other similar
reaction or radioactive force or matter.

In any action suit or other proceeding where the Company alleges that by reason of the
provisions of this condition any loss or damage is not covered by this policy, the burden of
proving that it is covered shall be upon the Insured.

CONDITIONS

1. This policy shall be voidable in the event of mis-representation, mis-description or non-

disclosure of any material particular.

2. The Insured shall at his own expense take all reasonable precautions and comply with all
reasonable recommendations of the Company to prevent Damage or Delay and shall comply
with all statutory requirements and manufacturers’ recommendations.

3. a) Representatives of the Company shall at any reasonable time have the right to inspect and
examine the Contract Works and the Insured shall provide such representatives of the
Company with all details and information necessary for the assessment of the risk of delay
in completion thereof.

b) The Insured shall immediately notify the Company by telegram and in writing of any
material change in the risk and cause at his own expense such additional precautions to be
taken as circumstances may require and the scope of cover and/or the premium shall if
necessary be adjusted accordingly.

4. On the happening of any Damage in consequence of which a claim is or may be made under
this policy, the Insured shall:

(a) forthwith give notice thereof to the Company.

(b) as soon as possible thereafter advise and submit to the Company any
modifications to the original schedule of progress in the execution of the Contract
Works where such modifications may cause a postponement of the Scheduled
Date of Commencement of the Business.

(c) with due diligence do and concur in doing and permit to be done all things which
may be reasonably practicable to minimize or check any interruption of or
interference with the Business or to avoid or diminish the loss.

(d) not later than 30 days after the expiry of the Indemnity Period, or within such
further time as the Company may in writing allow, at his own expense deliver to
the Company in writing a statement setting forth particulars of his claim together
with details of all other insurances (if any) covering the Damage or any part of it
or consequential loss of any kind resulting therefrom.

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 ROYAL SUNDARAM GENERAL INSURANCE CO. LIMITED
(formerly known as Royal Sundaram Alliance Insurance Company Limited)
Regd Office 21 Patullos Road, Chennai – 600 002.
Corporate Office: Vishranthi Melaram Towers, No. 2/319, Rajiv Gandhi
Salai (OMR),Karapakkam, Chennai – 600 097
Call: 1860 425 0000. Email – customer.services@royalsundaram.in
Website: www.royalsundaram.in
IRDA Registration No. 102 | CIN – U67200TN2000PLC045611

(e) at his own expense produce or procure and give to the Company such books of
account and other business books, vouchers, invoices, balance sheets and other
documents, proofs, information, explanation and other evidence as may
reasonably be required by or on behalf of the Company for the purposes of
investigating or verifying the claim together with a declaration on oath or in other
legal form of the truth of the claim and of any matters connected therewith.

No claim under this policy shall be payable unless the terms of this condition have been
complied with, and in the event of non-compliance therewith in any respect, any payment
on account of the claim already made shall be repaid to the Company forthwith.

5. The Company and every person authorised by the Company shall, without prejudice to any
party insured by this policy, have access to the Contract Site where the loss or damage
occurred for the purpose of direct negotiation with the contractor or sub-contractor
responsible in order to establish the possible cause and extent of the loss and damage, their
effect on the Contract Works, to examine the possibilities for minimising any delay to the
Scheduled Date of Commencement of the Business, and, if necessary, to make any
reasonable recommendations for the avoidance or mimimisation of such delay.

6. The indemnity shall be payable one month after final determination of the amount thereof.
The Insured may, notwithstanding, one month after the Company has been duly notified of
and has acknowledged its liability for the loss, claim as advance payments the minimum
amounts payable under the prevailing circumstances. The Company shall in any case be
entitled to postpone any indemnity payment until the necessary proof is furnished of the
Insured’s right to receive it. Furthermore, if, as a result of any Damage or Delay, police or
criminal investigations have been initiated against the Insured, the Company shall be entitled
to postpone payment until the completion of such investigations.

7. In no case whatsoever shall the Company be liable in respect of any claim under this policy
after the expiration of:

(a) one year from the end of the Indemnity Period, or, if later
(b) three months from the date on which payment shall have been made or liability admitted
by the insurers under the Contract Works policy covering the Damage giving rise to the
claim,
unless the claim is the subject of pending action or arbitration or of a pending reference with
the ombudsman.

8. This policy, the Schedule and the Specification annexed hereto, (each of which forms an
integral part of this policy), shall be read together as one contract, and words and
expressions to which specific meanings have been attached in any part of this policy shall
bear such specific meanings wherever they may appear.

9. Any extension of the Construction Period, the Erection Period or the Period of Insurance under
the Contract Works policy shall not automatically lead to an extension of the Period of
Insurance stated in the Schedule to this policy.

Any extension required to the Period of Insurance under this policy shall be requested in
writing as soon as possible by the Insured, who shall state the circumstances leading to the
need for such extension, and such extension shall only have effect under this policy if
expressly agreed by the Company in writing.

10. Any alteration to the Scheduled Date of Commencement of the Business shall be reported to
the Company by the Insured as soon as possible, and shall only have effect under this policy
if expressly agreed by the Company in writing.

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 ROYAL SUNDARAM GENERAL INSURANCE CO. LIMITED
(formerly known as Royal Sundaram Alliance Insurance Company Limited)
Regd Office 21 Patullos Road, Chennai – 600 002.
Corporate Office: Vishranthi Melaram Towers, No. 2/319, Rajiv Gandhi
Salai (OMR),Karapakkam, Chennai – 600 097
Call: 1860 425 0000. Email – customer.services@royalsundaram.in
Website: www.royalsundaram.in
IRDA Registration No. 102 | CIN – U67200TN2000PLC045611

11. If at the time of occurrence of any Damage there shall be in force any other insurance
covering the loss of Gross Profit resulting therefrom, or covering any other item insured by
this policy in respect of which a claim may arise from such Damage, the Company shall not be
liable to pay or contribute more than its rateable proportion of any claim arising from such
Damage.

12. If any dispute or difference shall arise as to the quantum to be paid under this policy (liability
being otherwise admitted) such difference shall independently of all other questions be
referred to the decision of a sole arbitrator to be appointed in writing by the parties hereto or,
if they cannot agree upon a single arbitrator within 30 days of any party invoking arbitration,
the same shall be referred to a panel of three arbitrators, consisting of two arbitrators, one to
be appointed by each of the parties to the dispute or difference and the third arbitrator to be
appointed by such two arbitrators and arbitration shall be conducted under and in accordance
with the provisions of the Arbitration and Conciliation Act, 1996.

It is clearly agreed and understood that no difference or dispute shall be referable to

arbitration as hereinbefore provided, if the Company has disputed or not accepted liability
under or in respect of this policy.

It is hereby expressly stipulated and declared that it shall be a condition precedent to any
right of action or suit upon this policy that the award by such arbitrator or arbitrators of the
amount of the loss or damage shall be first obtained.

13. The Insured shall at the expense of the Company do and concur in doing and permit to be
done all such acts and things as may be necessary or required by the Company in the interest
of enforcing any rights or remedies or of obtaining relief or indemnity from parties to which
the Company shall be or would become entitled or subrogated upon their paying for or
making good any loss under this policy whether such acts and things shall be or become
necessary or required before or after the Insured’s indemnification by the Company.

14. Every notice and other communication to the Company required by these conditions must be
written or printed.

Cancellation:

This insurance may be terminated at any time at the request of the Insured, in which case the
Company will retain the premium at customary short period rate for the time the policy has been
in force.

This insurance may also at any time be terminated at the option of the Company, on 15 days'
notice to that effect being given to the Insured, in which case the Company shall be liable to
repay on demand a rateable proportion of the premium for the unexpired term from the date of
the cancellation.

Renewal notice:

The Company shall not be bound to accept any renewal premium nor give notice that such is due.

The product / plan may be withdrawn at any time, by giving a notice before 3 months from the
next renewals to the Insured by Courier / Registered Post / Acknowledgement due post at the
address recorded / updated in the policy. When the policy is withdrawn, the product / plan shall
not be available for renewal at the due date. However, the cover under such policy shall continue
till the expiry date shown in the schedule of the policy. In the event of withdrawal of a product,
Company shall offer similar alternative product from its currently marketed product suites.

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 ROYAL SUNDARAM GENERAL INSURANCE CO. LIMITED
(formerly known as Royal Sundaram Alliance Insurance Company Limited)
Regd Office 21 Patullos Road, Chennai – 600 002.
Corporate Office: Vishranthi Melaram Towers, No. 2/319, Rajiv Gandhi
Salai (OMR),Karapakkam, Chennai – 600 097
Call: 1860 425 0000. Email – customer.services@royalsundaram.in
Website: www.royalsundaram.in
IRDA Registration No. 102 | CIN – U67200TN2000PLC045611

Grievance Redressal Procedure:

In case the Insured Person is aggrieved in any way, the Insured Person may contact the Company
at the specified address, during normal business hours for the following grievances:
a. Any partial or total repudiation of claims by the Company.
b. Any dispute regard to premium paid or payable in terms of the policy.
c. Any dispute on the legal construction of the policies in so far as such disputes relate to
claims.
d. Delay in settlement of claims.
e. Non-issue of any insurance document to customer after receipt of the premium.
f. Any other grievance.
The Insured Person may approach the Insurance Ombudsman, within whose jurisdiction the
branch or office of Royal Sundaram General Insurance Co. Limited is located. The Insurance
Ombudsman's offices are located at Ahmedabad, Bengaluru, Bhubaneshwar, Bhopal, Chandigarh,
Chennai, Ernakulam, Guwahati, Jaipur, Kolkata, Lucknow, Noida, Patna, Pune, Hyderabad,
Mumbai and Delhi. For detailed grievance redressal procedure and for Contact Details of
Insurance Ombudsman, please visit our website www.royalsundaram.in

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