Section I

General Rules and Regulation

These rules and regulations are applicable to all sections of this Tariff.

1. POLICY

a) Only Standard Fire and Special Perils Policy (hereinafter referred to as Policy) with the
permitted "Add- on" covers (as appearing under Section VIII) if any, can be issued.

Note:- Unless otherwise specifically provided for, this tariff is applicable to land-based
properties only.

b) The wordings of the policy shall be as shown in Section II of the Tariff.

c) Policy(ies) should be read together with proposal form(s), schedule, specification,

endorsements, warranties and clauses as one contract.

d) Policy(ies) covering Buildings and/or contents shall show blockwise separate amounts on (i)
Building (ii) Machinery and accessories (iii) Stock and Stock-in-Process and (iv) Furniture
and other contents.

e) It is permissible to exclude Storm, Tempest, Flood and Inundation group of perils

(hereinafter referred to as STFI) and/or Riot, Strike, Malicious and Terrorism Damage perils
(hereinafter referred to as RSMTD) at inception of the Policy only by deleting the relevant
perils from the Policy. The deletion shall apply for the entire property in one
complex/compound/location covering the entire interest of the Insured under one or more
policy(ies) without any option for selection. Reduction in premium rates for such deletion(s)
may be allowed as shown under the relevant sections of the Tariff. When these perils are
deleted from the scope of the policy, the general exclusions shall include these perils.

f) Any risk, which has not been provided for in the Tariff, shall be referred to the Committee for
rating. Provisional rate of Rs. 2.50 per mille shall be charged in such cases for covering the
risks under Standard Fire and Special Perils Policy. No discounts and/or agency
commission shall be allowed on this rate. For add-on covers, additional rates provided in
section VIII shall be charged

g) Rates shown under this tariff are minimum rates. Insurers may charge rates higher than
those given under the tariff.

2. VALUED POLICY(IES)

Valued Policy(ies) can be issued only for properties whose Market Value cannot be
ascertained. e.g. Curios, Works of Art, Manuscripts, Obsolete machinery and the like
subject to the valuation certificate being submitted and found acceptable by the insurers.

3. LONG TERM POLICIES

Policies for a period exceeding 12 months shall not be issued except for "Dwellings".

4. MID-TERM COVER

Generally, it is not permissible to grant mid-term cover for STFI and/or RSMTD perils. The
following provisions shall apply, where such covers are granted mid-term:

a) Insurers must receive specific advice from the insured accompanied by payment of the
required additional premium in cash or by draft. This additional premium shall not be
adjusted against existing Cash deposits or debited to Bank guarantee.
 b) Mid-term cover shall be granted for the entire property at one complex
/compound/location covering the entire interest of the Insured under one or more policy(ies).
Insured shall not have any option for selection.

c) Cover shall commence 15 days after the receipt of the premium.

d) The premium rates as under shall be charged on short period scale (as per Rule 8) on
full sum insured at one complex/compound/location covering the entire interest of the
insured for the balance period i.e. up to the expiry of the policy.

Mid-Term Section III Section VI Section IV, V

Inclusion Of Materials in Materials in And VII
godown open
STFI 0.20%0 0.35%0 2.00%0 0.35%0
RSMTD 0.15%0 0.15%0 0.15%0 0.15%0

5. PAYMENT OF PREMIUM

Premium shall be paid in full and shall not be accepted in installments or by deferred
payments in any form.

N.B:- It is not permissible to split sum insured of the same property under various policies for
different periods of insurance to derive advantage of deferred installments for payment of
premium. Notwithstanding the above, different policies may be issued for stocks where
circumstances necessitate issuance of such policies.

6. MINIMUM PREMIUM

Minimum premium shall be Rs.100/- per policy except for risks ratable under Section III and
‘Tiny Sector Industries’ under Section IV where the minimum premium shall be Rs. 50/ per
policy.

7. PARTIAL INSURANCE

It is not permissible

a) to issue a policy covering only certain portions of a building. Notwithstanding this, the
plinth and foundations or only the foundation of a building may be excluded.

b) to issue a policy covering only specified machinery (except Boilers), parts of machine or
accessories thereof housed in the same block/ building.

N.B. Where portions of a building and/or machinery therein are under different ownership, it
is permissible for each owner to insure separately but to the full extent of his interest on the
building and/or machinery therein. In such cases, the Insured's interest shall be clearly
defined in the policy.

8. RATES FOR SHORT PERIOD INSURANCE

Policies for a period of less than 12 months shall be issued at the rates set out hereunder:

For a period not exceeding 15 days 10% of the Annual rate

-do- 1 month 15% of the Annual rate
 -do- 2 months 30% of the Annual rate
-do- 3 months 40% of the Annual rate
-do- 4 months 50% of the Annual rate
-do- 5 months 60% of the Annual rate
-do- 6 months 70% of the Annual rate
-do- 7 months 75% of the Annual rate
-do- 8 months 80% of the Annual rate
-do- 9 months 85% of the Annual rate
For a period exceeding 9 months The full Annual rate

N.B.: Extension of short period policy(ies) shall not be permitted.

9. LOADING FOR "KUTCHA" CONSTRUCTION

Building(s) having walls and/or roofs of wooden planks/thatched leaves and/or grass/hay of any
kind/bamboo/plastic cloth/asphalt cloth/canvas/tarpaulin and the like shall be treated as 'Kutcha'
construction for rating.

An additional rate of Rs.4.00%o shall be charged for such building(s) and/ or contents thereof.

Note:-Temporary sheds (attached to buildings) erected during the monsoon solely for the
purpose of monsoon protection are permitted without loading provided such sheds are not used
for storage purpose.

10. RULES FOR CANCELLATIONS

10.1 For Cancellation of insurance policy.

10.1.1 At the option of the insured:-

10.1.2 1 Retention of premium shall be at Short Period Scale for the period the policy
has been in force, subject to the retention of minimum premium by the Insurer.

10.1.3 During the currency, if a policy is replaced with the same insurer by a new annual one covering
the identical property, refund of premium may be allowed on pro-rata basis at the original rates
for the sum insured replaced.

10.1.4 For the sum insured not replaced, refund must be calculated after charging premium at short
period scale on such sum for the time the insurance has been in force subject to retention of the
minimum premium by the insurer.

In case of short period policies, premium shall be retained at the applicable short period scale.
N.B.:- In case a policy is cancelled on account of a Government Order or on completion of a
“Building in course of construction” or where Buildings are demolished, pro-rata refund of
premium may be allowed.

10.2 At the option of the insurer:-

Refund of premium shall be on pro-rata basis for the unexpired term.

11. MID-TERM REVISION IN SUM INSURED :

Mid-term revision in sum insured shall be allowed as follows:

Increase in sum insured : On pro-rata basis
Decrease in sum insured : On short-period scale
12. ESCALATION CLAUSE :

It will be in order for Insurers to allow automatic regular increase in the Sum Insured throughout
the period of the policy in return for an additional premium to be paid in advance. The terms
and conditions for this extension shall be as follows

a) The selected percentage increase shall not exceed 25% of the Sum Insured.

b) The additional premium, payable in advance, will be at 50% of the full rate, to be
charged on the selected percentage increase.

c) The Sum Insured at any point of time would be assessed after application of the
Escalation Clause.

d) Escalation Clause will apply to policies covering Building, Machinery and Accessories
only and will not apply to policies covering stock.

e) Escalation Clause will apply to all policies and is not restricted to policies issued on
reinstatement value basis.

f) Pro-rata condition of Average will continue to apply as usual.

g) The automatic increase operates from the date of inception upto the date of operation
of any of the Insured Perils.

Note:- For endorsement wording , see, Clause F, Annexure A.

13. FLOATER POLICY

Floater Policy (ies) can be issued for stocks at various locations under one Sum Insured (The
Standard Floater Clause I, Annexure A shall be attached to such policies).

Note: Unspecified locations shall not be allowed.

Rating: The rate shall be the highest rate applicable to insured's stocks at any location with a
loading of 10 %.

N.B.1: In case Stocks in a process block are covered under the Floater Policy and the rate for
the process block is higher than the storage rate, the process rate plus 10% loading shall apply.

N.B.2: Presence of “Kutcha" construction may be ignored.

N.B.3: If stocks situated within godowns/process blocks in the same compound are covered
under floater policy, no floater extra is chargeable.
14. DECLARATION POLICIES

To take care of frequent fluctuations in stocks/stock values, Declaration Policy(ies) can be

granted subject to the following conditions (Standard Declaration Clause J, Annexure A shall be
attached to such policies):

a) The minimum sum insured shall be Rs 1 crore in one or more locations and the sum insured
shall not be less than Rs. 25 lakhs in at least one of these locations. It is necessary that the
declared values should approximate to this figure at sometime during the policy year.

b) Monthly declarations based on a) the average of the values at risk on each day of the month
or b) the highest value at risk during the month shall be submitted by the Insured latest by the
last day of the succeeding month. If declarations are not received within the specified period,
the full sum insured under the policy shall be deemed to have been declared.

c) Reduction in sum insured shall not be allowed under any circumstances.

d) Refund of premium on adjustment based on the declarations/ cancellations shall not exceed
50% of the total premium.

e) The basis of value for declaration shall be the Market Value anterior to the loss.

f) It is not permissible to issue declaration policy in respect of

i. Insurance required for a short period.

ii. Stocks undergoing process.
iii. Stocks at Railway sidings

g) If after occurrence of any loss it is found that the amount of last declaration previous to the
loss is less than the amount that ought to have been declared, then the amount which would
have been recoverable by the insured shall be reduced in such proportion as the amount of said
last declaration bears to the amount that ought to have been declared.

15. FLOATER DECLARATION POLICIES

Floater Declaration policy(ies) can be issued subject to a minimum sum insured of Rs 2 crores
and compliance with the Rules for Floater and Declaration Policies respectively except that the
minimum retention shall be 80% of the annual premium. (Standard Floater Clause I and
Declaration Clause J , Annexure A shall be attached to such policies):

16. CLAIMS EXPERIENCE DISCOUNT / LOADING

Risks having sum insured (on buildings and contents of all blocks in one compound of one
complex in one location) above Rs.50 Crores rateable under Sections IV, V, VI & VII of this tariff
shall attract claims experience discounts/loadings based on the incurred claims experience of all
the policies covering the Insured’s interest for the preceding 36 months excluding the expiring
policy period. (If there is any break in insurance, available 36 months experience shall be taken
into account) as per the table given below.

Incurred claim ratio for the preceding Discount Loading

36 months excluding the expiring (%) (%)
policy period *
Upto 5 % 15 --
Above 5% & upto 10% 10 --
Above 10% & upto 15% 5 --
Above 15% & upto 30% -- --
 Above 30% & upto 40% -- 2.5
Above 40% & upto 55% -- 5
Above 55% & up to 75% -- 10
Above 75% & up to 100% -- 15
Above 100% -- To be referred to TAC

* On renewal of business either by an existing insurer or by a new insurer, a provisional

loading of 15% must be charged in all cases where certified details of claims experience by
respective insurers are not available. This loading shall be adjusted subsequently on receipt
of the exact claims experience.

17. FIRE EXTINGUISHING APPLIANCES DISCOUNT

The discounts as per the scale given below may be granted by the Insurers to detached or
segregated (as per the Committees Building Regulations) blocks of the risks protected by
Fire Extinguishing Appliances ratable under Sections III, IV, V, VI and VII of the Tariff
[except for Floater and/or Floater Declaration Policy(ies)] subject to the following:

a) System is erected and tested as per the relevant Regulations of the TAC and a
certificate from LPA or TAC accredited Professional(s) /Professional agency(ies)
confirming the efficacy of the system and its full compliance with the Committee’s rules
is submitted by the Insured.

Note: Professional(s) / Professional Agency (ies) designing and/or installing the system
themselves shall get the system certified by third parties.

b) The installation is maintained in an efficient working order at all times and an Annual
Maintenance Contract (AMC) with an external agency is in force.

Note:- Any agency other than the one involved in the installation of the system or a third
party having up-to-date knowledge of maintenance of fire fighting equipment can be
approached for AMC.

Type of installation Discount (%)

a) Hand Appliances & Trailer Pumps/ Fire Engines 2.5
b) Hand Appliances & Hydrant System 5
c) Hand Appliances & independent Sprinkler / Fixed Water Spray System 7.5
d) Hand Appliances + Hydrant System & independent Sprinkler/ Fixed 10
Water Spray System

N.B.:1 Absence of Hand Appliances for Storage risks will not prejudice the applicable discounts
N.B.:2 The discounts are not cumulative

18. RATING OF RISKS IN MULTIPLE OCCUPANCY INDUSTRIAL ESTATE

Risks in Multiple Occupancy Industrial Estate shall be rated `Per se'. If the entire building of
the Industrial Estate is insured under one sum insured, a rate of Rs. 1.80%o shall be
chargeable to 'building'.

19. SILENT RISK

Risks rateable under Sections IV and V are allowed silent rates as per the following table.
The silent rates are not applicable if a risk goes silent following a loss under the policy.
Note:- Risks becoming silent shall not be entitled to any discounts.
 Factories where no manufacturing / Retention of the premium shall be based on the
storage activities are carried out appropriate storage rate or silent risk rate of
continuously for 30 days or more. Re.1.00%o whichever is higher.

20. Voluntary Deductibles

On receipt of application from the insured, Insurer may consider suitable discounts for voluntary
deductibles as per the scale shown in the table below. The discounts are applicable under the
Standard Fire and Special Perils Policy as well as for the add-on covers.

Note: The Insurer shall attach to the policy(ies) a suitable clause in case the insured opts for the
deductible and discount in the premium as shown in the table.

For endorsement wording see Clause K, Annexure A.

Note: The Insurer shall attach to the policy(ies) a suitable clause in case the insured opts for the
deductible and discount in the premium as shown in the table.

For endorsement wording see Clause K, Annexure A.

Table of discounts for Voluntary Deductible

Deductible Amount Discount (%)

AOG Perils Other perils

5% of Claim amount In Rs. lakhs
subject to minimum of Rs.
10 lakhs 5 2
20 lakhs 10 4
30 lakhs 15 6
60 lakhs 30 8
100 lakhs 50 10
> 100 lakhs > 50 To be referred to TAC

21. COMPUTATION OF RATE

The following sequence shall be adopted for computation of the rate :-

1. Basic Rate
2. 5% Reduction for Sprinklered blocks if applicable (for risks rateable under Sections
III, IV, V and VI).
3. Reduction in rates for deletion of STFI and/or RSMTD perils, if opted out.
4. Tariff extra for `Kutcha' Construction, if applicable ( to be applied on 1-2-3)
5. Discount/loading for claims experience (to be applied on 1-2-3-/+4)
6. Discount for FEA on protected blocks (to be applied on 1-2-3-/+4 )
7. Discount for voluntary deductible shall be applicable on the total premium calculated
on the basis of final rate worked out as above.
 Section II
STANDARD FIRE AND SPECIAL PERILS POLICY
IN CONSIDERATION OF the Insured named in the Schedule hereto having paid to the..................
Insurance Company Limited (hereinafter called the Company) the full premium mentioned in the said
schedule, THE COMPANY AGREES, (Subject to the Conditions and Exclusions contained herein or
endorsed or otherwise expressed hereon) that if after payment of the premium the Property insured
described in the said Schedule or any part of such Property be destroyed or damaged by any of the
perils specified hereunder during the period of insurance named in the said schedule or of any
subsequent period in respect of which the Insured shall have paid and the Company shall have
accepted the premium required for the renewal of the policy, the Company shall pay to the Insured the
value of the Property at the time of the happening of its destruction or the amount of such damage or at
its option reinstate or replace such property or any part thereof

I Fire
Excluding destruction or damage caused to the property insured by
a) i) Its own fermentation, natural heating or spontaneous combustion.
ii) Its undergoing any heating or drying process.
b) Burning of property insured by order of any Public Authority.
II Lightning
III Explosion/Implosion
Excluding loss, destruction of or damage
a) to boilers (other than domestic boilers), economizers or other vessels, machinery or
apparatus( in which steam is generated) or their contents resulting from their own
explosion/implosion,
b) caused by centrifugal forces.
IV Aircraft Damage
Loss, Destruction or damage caused by Aircraft, other aerial or space devices and articles
dropped there from excluding those caused by pressure waves.
V Riot, Strike, Malicious and Terrorism Damage
Loss of or visible physical damage or destruction by external violent means directly caused to
the property insured but excluding those caused by
a) total or partial cessation of work or the retardation or interruption or cessation of any
process or operations or omissions of any kind.
b) Permanent or temporary dispossession resulting from confiscation, commandeering,
requisition or destruction by order of the Government or any lawfully constituted
Authority.
c) Permanent or temporary dispossession of any building or plant or unit or machinery
resulting from the unlawful occupation by any person of such building or plant or unit or
machinery or prevention of access to the same.
d) Burglary, housebreaking, theft, larceny or any such attempt or any omission of any
kind of any person (whether or not such act is committed in the course of a
disturbance of public peace) in any malicious act.
VI Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation
Loss, destruction or damage directly caused by Storm, Cyclone, Typhoon, Tempest, Hurricane,
Tornado, Flood or Inundation excluding those resulting from earthquake, Volcanic eruption or
other convulsions of nature. (Wherever earthquake cover is given as an “add on cover” the
words “excluding those resulting from earthquake volcanic eruption or other convulsions of
nature” shall stand deleted.
VII Impact Damage
Loss of or visible physical damage or destruction caused to the property insured due to impact
by any Rail/ Road vehicle or animal by direct contact not belonging to or owned by
a) the Insured or any occupier of the premises or
b) their employees while acting in the course of their employment.
VIII Subsidence and Landslide including Rock slide
Loss, destruction or damage directly caused by Subsidence of part of the site on which the
property stands or Land slide/Rock slide excluding:
a) the normal cracking, settlement or bedding down of new structures
b) the settlement or movement of made up ground
c) coastal or river erosion
d) defective design or workmanship or use of defective materials
e) demolition, construction, structural alterations or repair of any property or groundworks
or excavations.
IX Bursting and/or overflowing of Water Tanks, Apparatus and Pipes
X Missile testing operations
XI Leakage from Automatic Sprinkler Installations
Excluding loss, destruction or damage caused by
a) Repairs or alterations to the buildings or premises
b) Repairs, Removal or Extension of the Sprinkler Installation
c) Defects in construction known to the Insured.
XII Bush Fire
Excluding loss, destruction or damage caused by Forest Fire.
PROVIDED that the liability of the Company shall in no case exceed in respect of each item the
sum expressed in the said Schedule to be insured thereon or in the whole the total Sum Insured
hereby or such other sum or sums as may be substituted therefore by memorandum hereon or
attached hereto signed by or on behalf of the Company.

(A) GENERAL EXCLUSIONS

This Policy does not cover (not applicable to policies covering dwellings)
a) The first 5% of each and every claim subject to a minimum of Rs.10,000 in respect of each
and every loss arising out of “Act of God perils” such as Lightning, STFI, Subsidence,
Landslide and Rock slide covered under the policy
b) The first Rs.10,000 for each and every loss arising out of other perils in respect of which the
Insured is indemnified by this policy
The Excess shall apply per event per insured.

Loss, destruction or damage caused by war, invasion, act of foreign enemy hostilities or war like
operations (whether war be declared or not), civil war, mutiny, civil commotion assuming the
proportions of or amounting to a popular rising, military rising, rebellion, revolution, insurrection or
military or usurped power.

Loss, destruction or damage directly or indirectly caused to the property insured by

a) ionizing radiations or contamination by radioactivity from any nuclear fuel or from any nuclear
waste from the combustion of nuclear fuel
b) the radio active toxic, explosives or other hazardous properties of any explosive nuclear assembly
or nuclear component thereof

Loss, destruction or damage caused to the insured property by pollution or contamination excluding
a) pollution or contamination which itself results from a peril hereby insured against.
b) any peril hereby insured against which itself results from pollution or contamination

Loss, destruction or damage to bullion or unset precious stones, any curios or works of art for an
amount exceeding Rs. 10000/-, manuscripts, plans, drawings, securities, obligations or documents of
any kind, stamps, coins or paper money, cheques, books of accounts or other business books,
computer systems records, explosives unless otherwise expressly stated in the policy.

Loss, destruction or damage to the stocks in Cold Storage premises caused by change of
temperature.

Loss, destruction or damage to any electrical machine, apparatus, fixture, or fitting arising from or
occasioned by over-running, excessive pressure, short circuiting, arcing, self heating or leakage of
electricity from whatever cause (lightning included) provided that this exclusion shall apply only to the
particular electrical machine, apparatus, fixture or fitting so affected and not to other machines,
apparatus, fixtures or fittings which may be destroyed or damaged by fire so set up.

Expenses necessarily incurred on (i) Architects, Surveyors and Consulting Engineer's Fees and (ii)
Debris Removal by the Insured following a loss, destruction or damage to the Property insured by an
insured peril in excess of 3% and 1% of the claim amount respectively.

Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of
any kind or description whatsoever.

Loss or damage by spoilage resulting from the retardation or interruption or cessation of any process
or operation caused by operation of any of the perils covered.
Loss by theft during or after the occurrence of any insured peril except as provided under Riot, Strike,
Malicious and Terrorism Damage cover.

Any Loss or damage occasioned by or through or in consequence directly or indirectly due to

earthquake, Volcanic eruption or other convulsions of nature.

Loss or damage to property insured if removed to any building or place other than in which it is herein
stated to be insured, except machinery and equipment temporarily removed for repairs, cleaning,
renovation or other similar purposes for a period not exceeding 60 days.

(B) GENERAL CONDITIONS

1. THIS POLICY shall be voidable in the event of mis-representation, mis-description or non-
disclosure of any material particular.

2. All insurances under this policy shall cease on expiry of seven days from the date of fall or
displacement of any building or part thereof or of the whole or any part of any range of buildings or of
any structure of which such building forms part.

PROVIDED such a fall or displacement is not caused by insured perils, loss or damage which is
covered by this policy or would be covered if such building, range of buildings or structure were
insured under this policy.

Notwithstanding the above, the Company subject to an express notice being given as soon as
possible but not later than seven days of any such fall or displacement may agree to continue the
insurance subject to revised rates, terms and conditions as may be decided by it and confirmed in
writing to this effect.

3.Under any of the following circumstances the insurance ceases to attach as regards the property
affected unless the Insured, before the occurrence of any loss or damage, obtains the sanction of the
Company signified by endorsement upon the policy by or on behalf of the Company :-
a) If the trade or manufacture carried on be altered, or if the nature of the occupation of or other
circumstances affecting the building insured or containing the insured property be changed in
such a way as to increase the risk of loss or damage by Insured Perils.
b) If the building insured or containing the insured property becomes unoccupied and so remains for
a period of more than 30 days.
c) If the interest in the property passes from the insured otherwise than by will or operation of law.

4. This insurance does not cover any loss or damage to property which, at the time of the happening
of such loss or damage, is insured by or would, but for the existence of this policy, be insured by any
marine policy or policies except in respect of any excess beyond the amount which would have been
payable under the marine policy or policies had this insurance not been effected.

5. 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.

6.(i) On the happening of any loss or damage the Insured shall forthwith give notice thereof to the
Company and shall within 15 days after the loss or damage, or such further time as the Company
may in writing allow in that behalf, deliver to the Company

a) A claim in writing for the loss or damage containing as particular an account as may be
reasonably practicable of all the several articles or items or property damaged or destroyed, and
of the amount of the loss or damage thereto respectively, having regard to their value at the time
of the loss or damage not including profit of any kind.
b) Particulars of all other insurances, if any

The Insured shall also at all times at his own expense produce, procure and give to the Company all
such further particulars, plans, specification books, vouchers, invoices, duplicates or copies thereof,
documents, investigation reports (internal/external), proofs and information with respect to the claim
and the origin and cause of the loss and the circumstances under which the loss or damage occurred,
and any matter touching the liability or the amount of the liability of the Company as may be
reasonably required by or on behalf of the Company 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

(ii) In no case whatsoever shall the Company be liable for any loss or damage after the expiry of 12
months from the happening of the loss or damage unless the claim is the subject of pending
action or arbitration; it being expressly agreed and declared that if the Company shall disclaim
liability for any claim hereunder and such claim shall not within 12 calendar months from the date
of the disclaimer have been made the subject matter of a suit in a court of law then the claim shall
for all purposes be deemed to have been abandoned and shall not thereafter be recoverable
hereunder.

7. On the happening of loss or damage to any of the property insured by this policy, the Company
may
 a) enter and take and keep possession of the building or premises where the loss or damage
has happened.
b) take possession of or require to be delivered to it any property of the Insured in the building
or on the premises at the time of the loss or damage.
c) keep possession of any such property and examine, sort, arrange, remove or otherwise
deal with the same.
d) sell any such property or dispose of the same for account of whom it may Concern.

The powers conferred by this condition shall be exercisable by the Company at any time until notice in
writing is given by the insured that he makes no claim under the policy, or if any claim is made, until
such claim is finally determined or withdrawn, and the Company shall not by any act done in the
exercise or purported exercise of its powers hereunder, incur any liability to the Insured or diminish its
rights to rely upon any of the conditions of this policy in answer to any claim.

If the insured or any person on his behalf shall not comply with the requirements of the Company or
shall hinder or obstruct the Company, in the exercise of its powers hereunder, all benefits under this
policy shall be forfeited.

The Insured shall not in any case be entitled to abandon any property to the Company whether taken
possession of by the Company or not.

8. If the claim be in any respect fraudulent, or if any false declaration be made or used in support
thereof or if any fraudulent means or devices are used by the Insured or any one acting on his behalf
to obtain any benefit under the policy or if the loss or damage be occasioned by the willful act, or with
the connivance of the Insured, all benefits under this policy shall be forfeited.

9. If the Company at its option, reinstate or replace the property damaged or destroyed, or any part
thereof, instead of paying the amount of the loss or damage, or join with any other Company or
Insurer(s) in so doing, the Company shall not be bound to reinstate exactly or completely but only as
circumstances permit and in reasonably sufficient manner, and in no case shall the Company be
bound to expend more in reinstatement than it would have cost to reinstate such property as it was at
the time of the occurrence of such loss or damage nor more than the sum insured by the Company
thereon. If the Company so elect to reinstate or replace any property the insured shall at his own
expense furnish the Company with such plans, specifications, measurements, quantities and such
other particulars as the Company may require, and no acts done, or caused to be done, by the
Company with a view to reinstatement or replacement shall be deemed an election by the Company
to reinstate or replace.

If in any case the Company shall be unable to reinstate or repair the property hereby insured,
because of any municipal or other regulations in force affecting the alignment of streets or the
construction of buildings or otherwise, the Company shall, in every such case, only be liable to pay
such sum as would be requisite to reinstate or repair such property if the same could lawfully be
reinstated to its former condition.

10. If the property hereby insured shall at the breaking out of any fire or at the commencement of any
destruction of or damage to the property by any other peril hereby insured against be collectively of
greater value than the sum insured thereon, then the Insured shall be considered as being his own
insurer for the difference and shall bear a rateable proportion of the loss accordingly. Every item, if
more than one, of the policy shall be separately subject to this condition.

11.If at the time of any loss or damage happening to any property hereby insured there be any other
subsisting insurance or insurances, whether effected by the Insured or by any other person or
persons covering the same property, this Company shall not be liable to pay or contribute more than
its rateable proportion of such loss or damage.

12.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 reasonably required by the Company for the purpose
of enforcing any rights and remedies or of obtaining relief or indemnity from other parties to which the
Company shall be or would become entitled or subrogated, upon its paying for or making good any
loss or damage under this policy, whether such acts and things shall be or become necessary or
required before or after his indemnification by the Company.

13.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 to 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, comprising of two arbitrators, one to be appointed by each of the parties to the
dispute/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/ arbitrators of the amount of the loss or
damage shall be first obtained.
14. Every notice and other communication to the Company required by these conditions must be
written or printed.

15. At all times during the period of insurance of this policy the insurance cover will be maintained to
the full extent of the respective sum insured in consideration of which upon the settlement of any loss
under this policy, pro-rata premium for the unexpired period from the date of such loss to the expiry of
period of insurance for the amount of such loss shall be payable by the insured to the Company.

The additional premium referred above shall be deducted from the net claim amount payable under
the policy. This continuous cover to the full extent will be available notwithstanding any previous loss
for which the company may have paid hereunder and irrespective of the fact whether the additional
premium as mentioned above has been actually paid or not following such loss. The intention of this
condition is to ensure continuity of the cover to the insured subject only to the right of the company for
deduction from the claim amount, when settled, of pro-rata premium to be calculated from the date of
loss till expiry of the policy.

Notwithstanding what is stated above, the Sum Insured shall stand reduced by the amount of loss in
case the insured immediately on occurrence of the loss exercises his option not to reinstate the sum
insured as above.
 Section III
DWELLINGS, OFFICES, HOTELS, SHOPS ETC.
RULES:
1 The 'Buildings' and 'Contents' of risks rateable under this Section shall be rated 'per se'.
2 Stocks belonging to the insured stored in the open area adjacent to the insured's premises
are held covered.
3 Incidental operations such as grinding of lenses in optical frame shops, polishing and/or
varnishing in furniture shops, occasional repairs etc. are permitted.
4 For seasonal storage of crackers during the currency of the policy in 'Shops dealing in
goods otherwise not provided', a loading of 10% shall be charged on the rates applicable to
'contents'.
5 The presence of hazardous goods (as per list attached) not exceeding 5% of the total value
of the stock may be ignored.
6 The reduction in premium rates for deletion of STFI and /or RSMTD perils at the inception
of the policy shall be as under:
STFI Re.0.15%o
RSMTD Re.0.10%o
7 Long Term Policy for Dwellings:-
Long Term Policies shall be issued based on either of the following 2 methods subject to
the conditions below to house/flat owners only:
a) The policy shall be issued for a minimum period of 3 years.
b) No refund shall be allowed for mid-term cancellation of such policies.
c) Mid-term inclusion of perils shall not be allowed.
d) Premium for entire policy period shall be collected in advance.
Method A:
Premium shall be charged in full without any discount. However sum insured under the
policy shall be deemed to have increased by 10% of the original sum insured at the end of
every 12 months period.
OR
Method B:
There shall not be any automatic increase in sum insured as in method A. However
appropriate discounts shall be allowable on applicable gross premium as per table below:

Duration of Policy Premium to be Charged

3 years policy 3 years premium in advance less 15% discount

4 years policy 4 years premium in advance less 20% discount
5 years policy 5 years premium in advance less 25% discount
6 years policy 6 years premium in advance less 30% discount
7 years policy 7 years premium in advance less 35% discount
8 years policy 8 years premium in advance less 40% discount
9 years policy 9 years premium in advance less 45% discount
Policy for 10 years and above Entire premium in advance less 50% discount.

N.B. Mid-term increase in sum insured shall be allowed on pro rata basis for the balance period.
 Rating schedule
Building Contents
Risk code Rate code Description rate rate
Per mille Per mille

1 01 Dwellings, Places of worships, Libraries, Museums, 0.50 0.50

Schools, Colleges, Hospitals including X-ray and other
Diagnostic clinics, Office premises, Meeting Rooms,
Auditoriums, Planetarium, Mess Houses, Clubs,
Marriage Halls, Showrooms and display centres where
goods are kept for display and no sales are carried
out, Educational and Research Institutes imparting
training in various crafts, Lodging/Boarding Houses,
Cycle Shed and Dish Antenna, Indoor stadiums.

2 02 Cafes, Restaurants, Hotels, Confectioner & Sweet 1.80 1.80

meat sellers

3 021 Shops dealing in goods otherwise not provided for 1.80 2.80
including Laundries, Battery Charging Service
Stations, Dry Cleaning, Amusement parks, Hoarding,
Neon signs and Sports Galleries, Outdoor stadiums.

4 022 Shops dealing in hazardous goods as per the list 1.80 3.80
below and Arms & Ammunition dealers, Motor Vehicle
showroom including sales and service, Petrol / Diesel
Kiosks

Note:1 Pump houses, garages, compound walls and ancillary equipments and / or other utilities at
the above occupancies shall carry the respective occupancy rate.

Note:2 Detached/Segregated block(s) within a risk which are protected by automatic sprinkler
installation with its own independent pumping arrangements, etc. as per the Committee’s rules for
sprinkler installation shall be allowed 5% reduction on the basic rate(s).

LIST OF HAZARDOUS GOODS

1. Celluloid Goods
2. Coir Loose
3. Crackers and Fire Works
4. Explosives of any kind
5. Hay/Straw
6. Hemp
7. Jute Loose
8. Matches
9. Methylated Spirit
10. Nitro-Cellulose Plastics
11. Oils/Ether/Industrial Solvents and other inflammable liquids flashing
liquids flashing at and below 320 C (Closed Cup test)
12. Paints with inflammable base having Flash point below
0
32 C (Closed Cup test) Other than in sealed tins or drums
0
13. Varnishes having Flash point below 32 C (Closed Cup
Test) other than in sealed tins or drums
14.Disinfectant liquids and liquid insecticides–other than in sealed tins or drums
15. Vegetable fibres of any kind including Rayon Fibre
 Section IV
INDUSTRIAL/MANUFACTURING RISKS
SCOPE
Rates provided in this section are for the entire insured property in the same industrial compound i.e.
all process areas, storage areas, offices, utilities, miscellaneous blocks, pipelines, roads, compound
wall, cables, street light etc.

In cases where more than one product is manufactured in the same block, the highest rate applicable
shall be charged overall

If two or more factories are situated in the same compound or independent products are
manufactured in the same compound the manufacturing blocks shall be rateable `per se’ if located
detached. Auxiliaries/miscellaneous blocks/utilities and godowns / tank farms, pipelines, roads,
compound wall etc. in such cases shall carry highest rate of all such manufacturing blocks.

Rules:
1. Operations incidental to the main process shall be rated at par with the main process if such
operations are carried out inside the main process blocks.

2. Dwelling houses located inside the factory compound may be rated ” per se”

3. In case of any clarification, insurers may refer the matter to the Committee after charging a
provisional rate as per General Rule 1 (f), Section I.

Note 1: Detached/Segregated block(s) within a risk which are protected by automatic sprinkler
installation with its own independent pumping arrangements, etc. as per the Committee’s rules for
sprinkler installation shall be allowed 5% reduction on the basic rate(s).

Note 2. The reduction in premium rates for deletion of STFI and /or RSMTD perils at the inception
of the policy shall be as under:
STFI Re.0.25%o
RSMTD Re.0.10%o

Rate
Risk Rate Description of risk (Rs.
code code per
mille)
001 07 Abrasive Manufacturing 2.00
002 05 Aerated Water Factories 1.50
003 05 Aerial Ropeway including trolley stations 1.50
004 07 Agarbatti manufacturing 2.00
005 11 Aircraft Hangers 3.00
Airport Terminal Buildings (including all facilities like Cafes, Shops etc)
006 05 1.50
N.B: Airport Cargo complex shall be rated under Section VI
007 18 Aluminium/ Magnesium Powder Plants 5.50
008 05 Aluminium ,Zinc, Copper Factories 1.50
009 07 Arecanut and/or Betelnut factories 2.00
010 05 Asbestos Steam Packing and lagging manufacturing 1.50
011 07 Atta and Cereal Grinding (excluding Dal Mills) 2.00
012 12 Audio/Video Cassette Manufacturing 3.50
013 05 Automobile Manufacturing 1.50
014 05 Bakeries 1.50
015 15 Basket Weavers and Cane Furniture Makers 4.50
016 08 Battery Manufacturing 2.25
017 11 Beedi Factories 3.00
018 05 Biscuit Factories 1.50
 Bitumenised Paper and / or Hessian Cloth Manufacturing including Tar
019 14 4.00
Felt Manufacturing.
020 09 Book Binders, Envelope and Paper Bag Manufacturing. 2.50
021 07 Breweries 2.00
022 03 Brickworks (including refractories and fire bricks) 1.00
023 05 Bridges - Concrete/Steel 1.50
024 07 Bridges-Wooden 2.00
025 03 Building In course of construction 1.00
026 09 Cable Manufacturing 2.50
027 11 Camphor Manufacturing 3.00
028 11 Candle Works 3.00
029 05 Canning Factories 1.50
030 05 Capsule Manufacturing 1.50
031 10 Carbon paper / Typewriter Ribbon Manufacturing 2.75
032 07 Cardamom Factories 2.00
033 08 Cardboard Box Manufacturing 2.25
Carpenters, Wood wool Manufacturing, Furniture Manufacturing and
034 15 4.50
other wood worker shops (excluding saw mill)
035 09 Carpet and Drugget Manufacturing (Cotton/jute/wool ) 2.50
036 12 Carpet and Drugget Manufacturing (Others) 3.50
037 11 Cashew nut Factories 3.00
038 07 Cattle feed Mill 2.00
039 24 Celluloid Goods Manufacturing 15.00
040 05 Cement / asbestos/concrete products Manufacturing 1.50
041 07 Cement Factories 2.00
042 05 Ceramic Factories and Crockery and Stoneware pipe 1.50
Manufacturing/Clay Works.
043 11 Chemical Manufacturing(Using materials with Flash Point below 32OC), 3.00
Bulk Drug Manufacturing
044 08 Chemical Manufacturing(others), Pharmaceuticals, Toiletry products 2.25
045 10 Cigar and Cigarette Manufacturing 2.75
046 12 Cigarette Filter Manufacturing (Using Solvents with Flash Point below 3.50
O
32 C )
047 10 Cigarette Filter Manufacturing (Others) 2.75
048 11 Cinema Film Production Studios 3.00
049 07 Cinematography Film Editing, Laboratory and Sound recording rooms
2.00
where Film processing is carried out
050 05 Cinematography Film Editing, Laboratory and Sound recording rooms
1.50
without Film processing.
051 09 Cinema Theatres 2.50
052 22 Circus, Touring Drama Troupes and Touring Cinema Theatres 10.50
053 05 Cloth Processing units situated outside the compound of Textile mills 1.75
054 18 Coal/Coke/Charcoal ball & briquettes Manufacturing 5.50
055 09 Coal Processing Plants 2.50
056 07 Coffee Curing, Roasting / Grinding 2.00
057 12 Coir Factories 3.50
058 12 Collieries - underground Machinery and pit head gear 3.50
059 05 Condensed Milk Factories, Milk Pasteurizing Plants and Dairies 1.50
060 05 Confectionery Manufacturing 1.50
Contractors Plant and Machinery
061 13 At one location only 3.75
15 Anywhere in India 4.50
(at specified locations)
062 12 Cork Products Manufacturing 3.50
063 22 Cotton Gin and Press Houses 10.50
064 15 Cotton Seed cleaning / Delinting Factory 4.50
065 05 Dehydration Factories 1.50
066 09 Detergent Manufacturing with Sulphonation Plant 2.50
067 08 Detergent Manufacturing (Others) 2.25
068 09 Distilleries 2.50
069 15 Duplicating/stencil paper Manufacturing 4.50
070 Electric Generation Stations
04 Hydro Power stations 1.25
05 Others 1.50
071 07 Electric Lamp /T.V. Picture Tube Manufacturing 2.00
072 08 Electronic Goods Manufacturing /Assembly 2.25
073 04 Electronic Software Parks 1.25
074 07 Enamel-ware factories 2.00
075 04 Engineering Workshop - - Structural Steel fabricators, Sheet Metal 1.25
fabricators, Hot/Cold Rolling, Pipe Extruding, Stamping, Pressing,
Forging Mills, Metal smelting, Foundries, Galvanizing works, Metal
Extraction, Ore processing (other than Aluminium, Copper, Zinc)
076 06 Engineering Workshop (Others), Clock/Watch Manufacturing , Motor 1.75
Vehicle Garages
077 22 Exhibitions, Fetes, Mandaps. 10.50
078 18 Explosives / Blasting Factories 5.50
079 08 Fertiliser Manufacturing (other than those rateable under Petrochemical 2.25
Tariff)
080 12 Filter and wax paper Manufacturing 3.50
081 18 Fireworks Manufacturing 5.50
082 08 Flax / Hemp Mills 2.00
083 12 Flour Mills 3.50
084 15 Foamed Plastics Manufacturing and / or converting plants 4.50
085 15 Foam Rubber Manufacturing 4.50
086 15 French Polish Manufacturing 4.50
087 05 Fruit and vegetable drying/dehydrating factories 1.50
088 05 Fruit products and Condiment Factories (including fruit pulp making) 1.50
089 07 Garment Makers, Topee, Hats and the like makers 2.00
090 07 Ghee Factories including vegetable Ghee mfg. 2.00
091 09 Glass Fibre Manufacturing 2.50
092 10 Glass wool Manufacturing 2.75
093 07 Glass Manufacturing 2.00
094 07 Gold thread factories / Gilding factories 2.00
095 05 Granite Factories using inflammable solvents 1.50
096 03 Granite Factories (Others) 1.00
097 09 Graphite electrode Manufacturing 2.50
098 09 Grain/seeds disintegrating/crushing/ Decorticating factories/ Dal mills. 2.50
099 09 Grease / Wax Manufacturing 2.50
100 05 Green Houses/ Algae/ Spirulina and the like 1.50
101 07 Gum/Glue/Gelatine Manufacturing 2.00
102 07 Gypsum board manufacturer 2.00
103 08 Hoisery,lace, Embroidery/Thread factories 2.25
104 05 Ice candy and Ice cream Manufacturing 1.50
105 05 Ice factories 1.50
106 11 Incandescent Gas mantle Manufacturing 3.00
107 07 Industrial Diamonds Manufacturing 2.00
108 11 Industrial Gas Manufacturing 3.00
109 09 Ink (excluding printing ink) Manufacturing 2.50
110 05 Jaggery Manufacturing 1.50
111 15 Jute Mills 4.50
112 12 Katha Manufacturing 3.50
113 07 Khandsari Sugar Manufacturing 2.00
114 09 Lac or Shellac Factories 2.50
115 12 Leather Cloth Factories 3.50
116 07 Leather Goods Manufacturing ( incl. boot/shoe) 2.00
117 05 Lime Kiln 1.50
118 09 Lithographic presses 2.50
119 15 Liquified Gas Bottling Plants 4.50
120 07 Malt Extraction Plants 2.00
121 04 Man-made Fibre Manufacturing (using Cellulose) 1.25
122 05 Man-made Fibre Manufacturing Plant (Others) 1.50
123 07 Manure Blending works 2.00
124 18 Match Factories 5.50
125 15 Mattress and Pillow making 4.50
126 07 Metallizing works ( involving metals only) 2.00
127 11 Metallising Works (others) 3.00
128 09 Metal/Tin printers 2.50
129 07 Mica Products Manufacturing 2.00
130 07 Mineral Oil blending and processing 2.00
131 05 Mosaic Factories 1.50
132 05 Mushroom Growing Premises (Excluding Crops) 1.50
133 24 Nitro Cellulose Manufacturing 15.00
134 11 Non-woven fabric Manufacturing 3.00
135 13 Oil Extraction 3.75
136 09 Oil Distillation Plants (essential) 2.50
137 07 Oil Mills refining ( Veg/Animal) 2.00
138 07 Oil Mills (Vegetable) 2.00
139 12 Oil and Leather Cloth Factories 3.50
140 07 Paint factories (Water based) 2.00
141 13 Paint (others) & Varnish Factories 3.75
142 15 Paints - Nitrocellulose based 4.50
143 09 Pan Masala making 2.50
144 08 Paper and Cardboard Mills (including Lamination) 2.25
145 08 Particle Board Manufacturing 2.25
146 14 Pencil Manufacturing 4.00
147 08 Petroleum Coke Calcination 2.25
148 12 Plastic Goods Manufacturing (excluding Foam Plastics) 3.50
149 18 Plywood / Wood veneering Factories/ Laminating Factories 5.50
150 05 Polyester Film Manufacturing / BOPP Film Manufacturing 1.50
151 07 Port Premises including jetties and equipment thereon And other port 2.00
facilities
Note 1:- Storage areas within the port premises shall be charged open
storage rates under section VI and/or under section VII as applicable.
Note 2:- No reduction in rates shall be allowed for opting out STFI perils.
152 05 Poultry Farms (Excluding birds therein) 1.50
153 22 Presses for coir fibres/waste/Grass/fodder/boosa/Jute 10.50
154 15 Presses for coir yarn / cotton/senna leaves 4.50
155 12 Presses for carpets, rugs and tobacco 3.50
156 10 Presses for hides and skins 2.75
157 12 Printing Ink Manufacturing / Roller composition factories 3.50
158 09 Printing Press 2.50
159 05 Pulverising Plants(Metals and non-hazardous goods) 1.50
160 11 Pulverizing Plants (Others) 3.00
161 11 Rice Mills 3.00
162 06 Rice Polishing Units 1.75
163 09 Rope works (Plastic), Assembling of Plastic Goods such as Toys and
2.50
the like
164 05 Rope Works (others) 1.50
165 11 Rubber Factories 3.00
166 12 Rubber Goods Mfg with Spreading 3.50
167 09 Rubber Goods Manufacturing without spreading 2.50
168 03 Salt crushing Factories and Refineries 1.00
169 18 Saw Mills (including Timber Merchants premises where sawing is done). 5.50
170 07 Sea Food / Meat Processing 2.00
171 06 Silk Mills / Spun Silk Mills 1.75
172 12 Snuff Manufacturing 3.50
173 08 Soap Manufacturing 2.25
174 09 Sponge Iron Plants 2.50
175 11 Spray Painting, Powder coating 3.00
176 05 Stables (excluding animals) 1.50
177 07 Starch Factories 2.00
178 03 Stone quarries 1.00
179 07 Sugar Candy Manufacturing 2.00
180 05 Sugar factories 1.50
181 15 Surgical Cotton Manufacturing 4.50
182 05 Sweetmeat Manufacturing 1.50
183 05 Tanneries 1.50
184 07 Tapioca factories 2.00
185 14 Tarpaulin and canvas proofing factories 4.00
186 08 Tea blending/packing factories 2.25
187 09 Tea Factories 2.50
188 05 Telephone Exchanges 1.50
189 Textile Mills
08 Spinning mills 2.25
07 Composite mills 2.00
(Composite Mills are those where activities from Blow Room to Cloth
processing are involved)
190 05 Tile & Pottery works 1.50
191 03 Tiny sector Industries with values at risk not exceeding Rs 10 lakhs 1.00
192 05 Tissue Culture Premises (Excluding Crops) 1.50
193 12 Tobacco Curing / Redrying Factories 3.50
194 12 Tobacco grinding/ crushing Manufacturing 3.50
195 20 Turpentine and rosin distilleries 6.50
196 08 Tyres and Tubes Manufacturing 2.25
197 11 Tyre Retreading and Resoling factories 3.00
198 07 Umbrella Assembly factories 2.00
199 09 Velvet Cloth Manufacturing 2.50
200 05 Vermicelli factories 1.50
201 05 Weigh Bridges 1.50
202 06 Weaving Mills 1.75
203 22 Wheat Threshers 10.50
204 07 Wood seasoning/treatment/ impregnation 2.00
205 09 Wool cleaning and pressing factories 2.50
206 07 Woollen Mills 2.00
207 05 Yarn Processing 1.75
208 07 Zip fasteners Manufacturing 2.00
 Section V
UTILITIES LOCATED OUTSIDE THE COMPOUNDS OF
INDUSTRIAL/MANUFACTURING RISKS
RULE:
The reduction in premium rates for deletion of STFI and /or RSMTD perils at the inception of
the policy shall be as under:
Re 0.25%o
Re. 0.10%o
Detached/Segregated block(s) within a risk which are protected by automatic sprinkler installation with
its own independent pumping arrangements etc. as per the Committee’s rules for sprinkler installation
shall be allowed 5% reduction on the basic rate(s).

RATING SCHEDULE
Rate Rate
Risk code Description of Risk
code (Rs. per mille)
5 08 Analytical / Quality Control Laboratories 2.25
6 05 Boiler House 1.50
7 03 Dam 1.00
8 05 Effluent /Sewage Treatment Plant 1.50
9 05 Electric Sub-Station 1.50
10 05 Electric Transmission / Distribution Lines 1.50
11 03 Pipe lines (carrying water only) 1.00
12 04 Pipe lines (others) 1.25
13 05 Pump House (Water) 1.50
14 09 Pump House (Others) 2.50
15 11 Railway tracks 3.00
16 07 Roads 2.00
17 03 Water Treatment Plant 1.00
18 05 Wireless Transmitting Stations 1.50
 Section VI
STORAGE RISKS OUTSIDE THE COMPOUNDS OF
INDUSTRIAL/MANUFACTURING RISKS
RULES:

1. Rates shown in this section shall apply to Buildings/Areas used for storage of materials

2. Operations such as packing/selecting/assorting/mending/stitching/battery charging and like

which do not materially alter the nature of risk are allowed to be carried out in premises.

3. The presence of hazardous goods of higher category (as per Committee’s list of hazardous
goods booklet) not exceeding 5% of the total value of the stocks may be ignored.

4. Utilities and miscellaneous blocks shall be rated at Re. 1.00 per mille.

5. The reduction in premium rates for deletion of STFI and /or RSMTD perils at the inception
of the policy shall be as under:

Materials in Godown Materials in Open

STFI Rs.0.25%o Rs.1.50%o

RSMTD Rs.0.10%o Rs.0.10%o

1. Incidental open storages upto 2% of sum insured on stock can be allowed when the risk
is rated under materials stored in godowns.

2. Detached/Segregated block(s) within a risk which are protected by automatic sprinkler

installation with its own independent pumping arrangements, etc. as per the Committee’s
rules for sprinkler installation shall be allowed 5% reduction on the basic rate(s).

Risk Description of Risk Materials Stored in

code
Godowns Open
and Silos
Rate Rate Rate Rate
Code (Rs. Code (Rs.
per per
mille) mille)

18 Storage of Non-hazardous goods subject to 03 1.00 09 2.50

warranty that hazardous goods of Category I, II, III ,
Coir waste, Coir fibre and Caddies are not stored
therein.
19 Storage of Category I hazaardous Goods subject to 09 2.50 19 6.00
warranty that goods listed in Category II, III, Coir
waste, Coir fibre and Caddies are not stored
therein.
20 Storage of hazardous Goods listed in Category II 15 4.50 21 8.50
subject to warranty that goods listed in Category III,
Coir waste, Coir fibre and Caddies are not stored
therein.
21 Storage of hazardous Goods listed in Category III 18 5.50 22 10.50
subject to warranty that Coir waste, Coir fibre and ,
Caddies are not stored therein.
22 Transporter’s godowns & Godowns of clearing and 18 5.50 22 10.50
forwarding agents.
23 Storage of Coir Waste ,Coir Fibre, Caddies 23 12.00 25 17.00
24 Cold Storage premises 09 2.50 -- --
 LIST OF HAZARDOUS MATERIALS AND GOODS AND
CATEGORISATION THEREOF ( PLEASE REFER COMMITTEE’S PUBLICATION “LIST OF
HAZARDOUS GOODS”)

MODE OF CLASSIFICATION

Hazardous Materials not included in the list may be classified depending on the properties
indicated below :

Category I 1. Solids which are moderately or slightly combustible

0
2. Flammable liquids having flash points above 65 C.
3. Inert and non-combustible gases.
4. Highly toxic materials.
5. Waste of non-hazardous materials.

Category II 1. Pyrotechnic materials.

0 0
2. Flammable liquids having flash point above 32 C upto 65 C.
3. Moderate Oxidising Agents and Oxygen.
4. Materials which evolve combustible gases in contact with water.
5. Waste of Category I materials.

Category III 1. Explosives.

2. Materials which are self ignitable.
0
3. Flammable liquids having flash point upto 32 C.
4. Strong Oxidising Agents.
5. Combustible gases.
6. Waste of Category II & III materials.
 Section VII
TANK FARMS/GAS HOLDERS OUTSIDE THE COMPOUNDS OF
INDUSTRIAL/MANUFACTURING RISKS
RULE
The reduction in premium rates for deletion of STFI and /or RSMTD perils at the inception of the
policy shall be as under:
Rate
(Rs.
Risk Rate
Description of Risk per
Code Code
mille)

23 17 Gas Holders/ Bullets/spheres and storages for liquified gases 5.00

except for Nitrogen, Carbon dioxide and inert gases

24 07 Gas Holders/ Vessels for Nitrogen, Carbon dioxide and inert 2.00
gases
0
25 12 Tanks containing liquids flashing at 32 C and below 3.50

26 07 Tanks (others) 2.00

NB:- 1. All tanks located in the same dyke shall carry the highest rate applicable overall.
NB:- 2. Utilities and Miscellaneous Blocks shall be rated at Re. 1.00%o
NB:- 3. Associated properties such as Pumping Stations, Compressor House, Blower House
etc. shall be rated at par with the rate applicable to respective Gas Holders/ Bullets /Spheres
Vessels/Tanks.
 ADD ON COVERS

Standard Fire and Special Perils Policy (Policy) can be extended to include the following `Add on'
covers :

1. Architects, Surveyors and Consulting Engineers Fees ( in excess of 3% claim amount)

2. Removal of Debris (in excess of 1% claim amount)

3. (A) Deterioration of Stocks in Cold Storage premises due to accidental power failure
consequent to damage at the premises of Power Station due to an insured peril

(B) Deterioration of stocks in cold storage premises due to change in temperature arising out
of loss or damage to the cold storage machinery(ies) in the Insured’s premises due to
operation of insured peril

4. Forest Fire
5. Impact Damage due to Insured’s own Rail/Road Vehicles, Fork lifts, Cranes, Stackers and
the like and articles dropped therefrom

6. Spontaneous Combustion

7. Omission to Insure additions, alterations or extensions

8. Earthquake (Fire and Shock)

9. Spoilage Material Damage Cover

10. Leakage And Contamination Cover

11. Temporary Removal of Stocks Clause

12. Loss Of Rent clause
13. Insurance Of Additional Expenses of Rent For An Alternative Accommodation

14. Start up Expenses

Rates to be charged for such add-on covers shall be as under:

Sl. Add-On Cover Rates applicable Value on which premium

No has to be charged
1. Architects, Surveyors and Consulting Policy Rate Specified sum insured not
Engineers Fees ( in excess of 3% claim exceeding 7.5% of claim
amount) amount

2. Removal of Debris (in excess of 1% claim Policy Rate Specified sum insured upto
amount) maximum 10% of sum
insured
3. (A) Deterioration of Stocks in Cold 25% of Policy Rate Sum insured of stocks
Storage premises due to accidental power
failure consequent to damage at the
premises of Power Station due to an
insured peril

(B) Deterioration of stocks in cold storage Policy Rate Sum insured of stocks
premises due to change in temperature
arising out of loss or damage to the cold
storage machinery(ies) in the Insured’s
premises due to operation of insured peril.

4. Forest Fire Minimum Rs. 5 perSpecified sum insured

mille
5. Impact Damage due to Insured’s own 5% of Policy Rate Policy Sum insured
Rail/Road Vehicles, Fork lifts, Cranes,
Stackers and the like and articles dropped
therefrom.

6. Spontaneous Combustion Sum insured of relative

Category I goods Rs.0.25%o commodity
Category II goods Rs.0.50%o
Category III goods Rs.0.75%o
Category IV goods Rs.1.00%o

7. Omission to Insure additions, alteration or Policy Rate 5% of sum insured of BMA

extensions
8. Earthquake (Fire and Shock) Policy sum Insured
Zone I Rs.1.00%o
Zone II Rs.0.50%o
Zone III Rs.0.20%o
Zone IV Rs.0.10%o

Note :- Dwelling, offices, hotels, shops etc rateable under Section III of the tariff can be covered
by charging a uniform rate of Re 0.10%0 regardless of the zones

9. Spoilage Material Damage Stocks in specified blocks Value of stocks in specified

Cover 5 times the Policy Rate blocks

Machinery, Containers & M/A value in specified blocks.

Equipments in specified blocks
2.5 times the Policy Rate

10. Leakage And Contamination Cover Leakage Leakage &

Cover only Contamination

Where the tanks are within the Rs.5%o Rs.10%o

Insured’s own premises
Specified sum insured
Where the tanks are located elsewhere Rs.6%o Rs.12%o

11. Temporary Removal of Stocks Clause 10% of policy Rate Policy sum insured

12. Loss of Rent clause Policy Rate Specified sum insured

13. Insurance Of Additional Expenses of Policy Rate Specified sum insured

Rent For An Alternative Accommodation

14. Start up Expenses Policy Rate Specified sum insured

Note:-1 Mid-term inclusion of the Add-On Covers is permissible subject to the provisions under Rules
4a, 4b and 4c of Mid-term cover, General Rules and Regulations, Section I. Annual premium shall be
charged for such mid-term inclusions. Also no refund of premium shall be made on the add-on covers
being cancelled mid-term unless the Policy is cancelled simultaneously or replaced by a fresh
insurance including add-on covers for an identical or increased amount.

Note:- 2 Policy Rate means either Policy Rate in case of specific industries or Average rate in case of
multiple products manufacturing industries.
 CLASSIFICATION OF EARTHQUAKE ZONES - DISTRICT WISE

STATE/UNION ZONE DISTRICTS

TERRITORY
ANDAMAN & I Entire Union Territory
NICOBAR
ISLANDS

ANDHRA III West Godavari, Krishna, Khammam, Warangal, Karimnagar,

PRADESH Anantapur.

IV Chitoor, Nellore, Cuddapah, Kurnool Mahboobnagar, Ranga

Reddy, Medak, Nizamabad, Adilabad, Nalgonda, Prakasam,
East Godavari, Visakhapatnam, Guntur, Vizianagarm,
Srikakulam, Hyderabad and Yanam (Pondicherry)

ARUNCHAL I Entire State

PRADESH
ASSAM I Entire State

BIHAR I Sitamarhi, Madhubani, Darbhanga, Saharsa.

II Purnia, Champaran (East), Champaran (West), Katihar,

Bighusarai, Samastipur, Muzaffarpur, Gopalganj, Siwan,
Saran, Vaishali, Nalanda, Patna, Monghyr, Bhagalpur.

III Santhal pragana, Bhojpur, Rohtas, Gaya, Aurangabad,

Nawda, Hazaribagh, Palamau, Giridih, Dhanbad.

IV Ranchi, Singhbhum.

CHANDIGARH II Entire Union Territory.

DELHI II Entire State

GOA III Entire State

GUJARAT I Katch

II Jamnagar.

III Rajkot, Surendernagar, Mehsana, Banaskantha,

Sabarkantha, Panchmahal, Baroda, Kheda, Ahmedabad,
Bhavnagar, Amreli, Junagadh, Bharuch, Surat, Valsad, Dang
(Ahwa), Gandhinagar, Union Territories-of Diu, Daman,
Dadra and Nagar Haveli.

HARYANA II Ambala, Sonepat, Rohtak, Karnal, Gurgaon, Faridabad,

Panipat, Rewari, Yamunanagar.

III Kurukshetra, Jind, Hissar, Bhiwani, Mahendragarh, Kaithal

IV Sirsa.

HIMACHAL I Chamba, Kullu, Kangra, Una, Hamirpur, Mandi, Bilaspur.

PRADESH
II Lahul and Spiti, Kinnaur, Shimla, Solan, Sirmaur.

JAMMU & KASHMIR I Baramula, Srinagar,

 II Gilgit, Chilas, Gilgit Wazarat, Muzaffarabad, Punch,
Anantnag, Mirapur, Riasi, Udhampur, Jammu, Kathua, Leh,
Tribal Territory.

KARNATAKA III Dakshin Kannad.

IV Belgaum, Bijapur, Bidar, Gulbarga, Raichur, Bellary,

Dharwad, Shimoga, Chitradurga, Chikmagalur, Tumkur,
Hassan, Bangalore, Kolar, Kodagu, Mandya, Mysore, Uttar
Kannnad.

KERALA III Entire State and Mahe (Pondichery)

LAKSHADWEEP IV Entire Union Territory.

MADHYA III West Nimar, East Nimar, Betul, Chhindwara, Hoshangabad,

PRADESH Raisen, Narsimhapur, Jabalpur, Shahdul, Sidhi, Surguja,
Raigarh.

IV Balaghat, Bastar (Jagdalpur), Bhind, Bhopal, Bilaspur,

Chhatarpur, Damoh, Datia, Dewas, Dhar, Durg, Guna,
Gwalior, Indore, Jhabua, Mandsaur, Mandla, Morena, Panna,
Raipur, Rajgarh, Sagar, Satna, Sehore, Shajapur, Shivpuri,
Tikamgarh, Ujjain, Vidisha, Rajnandgaon, Ratlam, Rewa,
Seoni.

MAHARASHTRA I Ratnagiri, Satara.

III Sindhudurg, Kolhapur, Pune, Nasik, Chandrapur, Thane,

Raigad, Dhule, Greater Bombay.

IV Sangli, Solapur, Osmanabad, Latur, Bid, Ahmadnagar,

Nanded, Parbani, Jalna, Aurangabad, Akola, Yavatmal,
Amravati, Wardha, Nagpur, Bhandara, Gadchiroli, Buldana,
Jalgaon.

MANIPUR I Entire State.

MEGHALAYA I Entire State.

MIZORAM I Entire State.

NAGALAND I Entire State.

ORISSA III Cuttack, Dhenkanal, Sambalpur.

IV Puri, Koraput, Kalahandi, Bolangir, Balasore, Keonjhar,

Mayjurbhganj, Baudhkhondmals, Ganjam, Sundargarh.

PONDICHERRY IV Entire Union Territory.

PUNJAB II Gurdaspur, Hoshiarpur, Amritsar, Fatehgarh Sahib,

Kapurthala, Jalandhar, Ludhiana, Rupnagar.

III Ferozepur, Faridkot, Patiala, Mansa, Sangrur, Bhatinda.

RAJASTHAN III Jaisalmer, Alwar, Bharatpur, Barmer, Jalor, Sirohi.

IV Ganganagar, Churu, Jhunjhunu, Jodhpur, Nagaur, Sikar,

Jaipur, Daulpur, Sawai Madhopur, Tonk, Ajmer, Pali,
 Bhilwara, Bundi, Kota, Udaipur, Chittaurgarh, Jahlawar,
Banswara, Dungarpur, Bikaner.

SIKKIM II Entire State.

TAMILNADU III Nilgiri, Coimbatore, Kannyakumari, Tirunelveli.

IV Chengalpattu,North-Arcot,Tiruvannamalai, South Arcot,

Dharampuri, Salem, Periyar, Trichirapalli,Thanjavur,
Nagapattinam, Pudukottai, Dindigul, Madurai, Kamarajar,
Pasumpon, Muthuramalinga Thevar, Ramanathapuram,
Chidambaranar, Madras.

TRIPURA I Entire State.

UTTAR PRADESH I Chamoli, Almora, Pithoragarh.

II Uttarkashi, Tehri Garhwal, Dehradun, Garhwal, Saharanpur,

Muzaffarnagar, Bijnor, Nainital, Moradabad, Meerut,
Ghaziabad, Rampur, Pilibhit, Bulandshahr, Kheri, Bahraich,
Gonda, Basti, Gorakhpur, Deoria.

III Bareilly, Badaun, Shahjehanpur, Aligarh, Mathura,, Ethah,

Hardoi, Sitapur, Agra, Mainpuri, Farukkabad, Unnao,
Lucknow, Barabanki, Rae Bareli, Sultanpur, Faizabad,
Azamgarh, Ballia, Pratapgarh, Jaunpur, Ghazipur, Varanasi,
Mirzapur.

IV Etawah, Kanpur, Jalaun, Jhansi, Hamirpur, Banda, Fatehpur,

Allahabad, Lalitpur.

WEST BENGAL I Cooch Bihar.

II Darjeeling, West Dinajpur, Jalpaiguri, Calcutta, 24 Parganas,

Maldah.

III Murshidabad, Birbhum, Bardhaman, Hoogli, Howrah, Nadia,

Bankura, Midnapore.

IV Purulia

Classification of materials according to the severity of the spontaneous combustion

properties is as shown below. In case a particular material is not listed under any of the
following categories, reference shall be made to the Committee for a ruling.

Category I (Low or Non-Existent)

Name of Materials
1. Acetone 26. Ethyl Glycol
2. Acids (except stearic Acid) 27. Film Lacquer
3. Amyl Acetate 28. Films (Safety and Non-safety)
4. Aniline 29. Fireworks of all kinds and/or color matches
5. Bagasse 30. Grains and /or Seeds
6. Bamboo Stocks 31. Groundnut Oil
7. Betel Nuts 32. Groundnut (Shelled)
8. Beedi Leaves & Beedies 33. Hides
9. Bitumen 34. Ixtle
10. Black Pepper 35. Jaggery in bags and/or loose
11. Carbitol 36. Jute – twine
12. Cardamom 37. Jute in bales and/or loose
13. Castor Oil 38. Kappas (unginned cotton)
14. Caustic Soda 39. Kerosene oil
15. Celluloid Tubes 40. Lamp Black
16. Chillies 41. Lanoline
17. Chrome yellow & Bronze Blue 42. Lard Oil (Pure)
18. Clean Cotton (Loose and/or in bales 43. Linseed
Including clean Cotton Waste)
19. Coconut Oil 44. Mahul Leaves
20. Copra, Copra Seed, Copra Meal 45. Mahuva flowers
21. Cotton Seed 46. Matches
22. Crysylic Acid 47. Metal Turnings
23. Diesel Oil, Engine Oil and Grease 48. Methanol in drums
24. Dry Coconuts 49. Molasses
25. Dry Ginger 50. Mustard Oil (Black), Mustard seed
And other oil seeds

51. Napthanic Acid 69. Scrap Leather

52. Neat food oil 70. Sisal
53. Nitro benzol (Nitrobenzene) 71. Snuff
54. Nitro Cellulose (in drums or barrels) 72. Spent earth with or without carbon
55. Oleic Acid 73. Spices
56. Olive Oil (Pure) 74. Spirits
57. Palm Oil 75. Staple Fibre
58. Petrol 76. Sugar
59. Petroleum Products 77. Sulphur
60. Phenol 78. Tallow
61. Plastic Goods 79. Tobacco-Loose and/or in bags
62. Powdered eggs 80. Tapioca chips
63. Powdered Milk 81. Turpentine
64. Polysizer (Sizing Material) 82. Turmeric
65. Pulses 83. Wall board
66. Rangolite (Sodium Formaldehyde 84. Wood pulp
Sulphoxylate)
67. Saw Dust 85. Wool (excluding wool waste)
68. Scrap Film (Nitrate) 86. Xylene

Category II (Moderate)
Name of the Materials
1. Bone Oil 26. Manuers except Fish Manure
2. Cardboards 27. Metal Powders
3. Cocoa Bean Shell 28. Mowra Flowers
4. Copra Cake 29. Oil Cake-Loose and/or in bags
5. Corn Oil (Maize Oil) 30. Olive Oil (Impure)
6. Cotton Seed Expeller 31. Paints containing drying Oil
7. Cotton Seed de-oiled cake 32. Paint scrapings
8. Cotton Seed oil 33. Pine Oil
9. Craft paper 34. Red Oik
10. Expelled Groundnut Cake 35. Rice Bran and Rice Husk
11. Feeds –Various 36. Rice Konda
12. Fertilizers, Organic or Containing 37. Rice Straw
Nitrates and mixture thereof
13. Foam Rubber Goods 38. Roofing Relt and Papers
14. Groundnut (de-oiled Cakes) 39. Scrap Rubber and / or Buffing
15. Hay and Grass 40. Soap Powder & Chips
16. Hydrogen Peroxide 41. Solvent Extraction
17. Hydrosulphite or Hydrosulphate of soda 42. Soyabean Oil
or Sodium Hydrosulphate or Sodium
Hydrosulphite
18. Iron Pyrites 43. Tarpaulin
19. Karadi Cake 44. Tung Oil.
20. Karadi (de-oiled Cake) 45. Urea
21. Karadi Oil 46. Waste Paper
22. Lime, Unflaked (Calcium Oxide) 47. Whale Oil
23. Liquid Ammonia 48. Wheat Husk
24. Lubricants excluding Petroleum Products 49. Wool Waste and Paper Waste
25. Maize (Corn) Oil 50. Zinc Dust

Category III (Variable)

Name of the Materials
1. Chemicals (Category I, II, III not 10. Oily Cotton
specified otherwise)
2. Coal tar 11. Paints and Varnish excluding Synthetic
Enamel
3. Colors 12. Perilla Oil
4. Dyes and/or Chemicals 14. Rags
5. Filter Cloth (Used) 15. Super Phosphate
6. Fire Wood 16. Synthetic Resins
7. Gunnies or Bardan 17. Sodium Nitrate
8. Manhaden Oil 18. Yellow Phosphorus
9. Monomers for Polymerization 19. Stearic Acid

Category IV (High)
Name of the Materials
1. Alfalfa Meal 12. Oiled Clothings
2. Cod Liver Oil 13. Oiled Fabrics
3. Corn Meal Feeds 14. Oiled Rags
4. Empire cloth 15. Oiled Silk
5. Fish Meal 16. Groundnut (Red Skin)
6. Fish Oil 17. Synthetic Enamels
7. Fish Manure 18. Tunginut Meals
8. Fish Scrap 19. Varnished Fabrics
9. Lard Oil (Commercial or 20. Waste of all kinds (Except wool and
Animal Oils) paper waste) including Oily and/or
10 Linseed Oil greasy waste.
11. Nitro Cellulose Lacquers 21. Sponge Iron
 Policy Endorsement Wordings:

1. Architects, Surveyors and Consulting Engineers Fees ( in excess of 3% of the claim

amount)

Policy may be extended to cover the above subject to following endorsement wordings.

“It is hereby declared and understood that the expenses incurred towards Architects, Surveyors
and Consulting Engineers fees for plans, specification tenders, quantities and services in
connection with the superintendence of the reinstatement for the Building, Machinery, Accessories
and equipment insured under this policy upto 7.5% of the adjusted loss is covered, but it is
understood that this does not include any cost in connection with the preparation of the Insured’s
claim or estimate of loss in the event of damage by insured perils”.

2. Removal of Debris (in excess of 1% of the claim amount)

Policy may be extended to cover the above subject to following endorsement wordings:

It is permissible to cover cost necessarily incurred by an insured in the removal of debris from the
premises of the insured, dismantling, demolishing, shoring up or propping of Insured property
following destruction or damage by Insured Peril by incorporating the following clause :

“On costs and expenses necessarily incurred by the insured

(a) In the removal of debris from the premises of the Insured;
(b) dismantling or demolishing;
(c) shoring up or propping;
of the portion or portions of the property insured by (Items.......... of) this policy destroyed or
damaged by perils hereby insured against but not exceeding in the aggregate Rs. ..................”

Note: 1. (b) & (c) above should be deleted when neither Building nor Machinery are covered.

Note: 2. The cover may be given by separate item in the policy for an amount not exceeding
10% of the total Sum Insured.

3. (A) Deterioration of Stocks in Cold Storage premises due to accidental power failure
consequent to damage at the premises of Power Station due to an insured peril

Policy covering stocks in cold storage premises may be extended to cover the above subject to
following endorsement wordings:

“In consideration of the payment of additional premium of Rs. __________ it is hereby agreed and
declared that notwithstanding anything to the contrary in this policy or in any of its conditions, this
policy covers destruction of or damage to the property hereby insured caused by change of
temperature in consequence of failure of electric supply at the terminal ends of electric service
feeders from which the Insured obtains electric supply directly due to damage caused by any peril
insured against under this policy to property at insured premises or any Electric Station or Sub-
Station of Public Electric Supply undertaking from which the Insured obtains electric supply.

Provided that the Company shall not be liable for any loss occasioned by the deliberate act of the
Government, Municipal or Local Authority or Supply Authority not performed for the sole purpose of
safeguarding life or protecting any part of the supply undertaking’s systems or by the exercise by
any such authority of its power to withhold or restrict or ration supply not necessitated solely by
damage to the Supply Undertaking’s generating or supply equipment by an insured peril.

Provided further that the Company shall not be liable for any loss unless the duration of each such
failure exceeds 24 hours.

Subject otherwise to the terms, exceptions, conditions and limitations of this Policy.”
In any action, suit or other proceedings where the company alleges that by reason of the provisions
of this condition any loss or damage is not covered by this insurance, the burden of proving that this
loss or damage is covered shall be upon the Insured.

3. (B) Deterioration of stocks in cold storage premises due to change in temperature arising
out of loss or damage to the cold storage machinery (ies) in the Insured’s premises due to
operation of insured peril.

Policy may be extended to cover the above subject to following endorsement wordings:

“In consideration of the payment of additional premium of Rs.__________ it is hereby agreed and
declared that notwithstanding anything to the contrary in this policy or in any of its conditions this
policy covers destruction of or damage to the property herby insured caused by change of
temperature in consequence of failure of electric supply following damage to Insured’s property due
to insured peril(s).

Provided further that the Company shall not be liable for any loss unless the duration of each such
failure exceeds 24 hours.

Subject otherwise to the terms, extensions, conditions and limitations of this Policy”.

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

4. Forest Fire

Policy may be extended to cover the above subject to following endorsement wordings:

“In consideration of the payment of additional premium the insurance under item …......... of the
policy shall extend to include loss of or damage to the property insured directly caused by burning,
whether accidental or otherwise, of forest, bush and jungles and the clearing of lands by Fire.”

Note 1: Where loss experience for previous 5 years excluding the expiring policy period is less
than 30%, a 50% discount on the rate may be considered.

Note 2: Where loss experience is above 60%, the rate shall be adjusted in such a way that the
loss experience for policy period worked out as given in Note 1 above be adjusted to 60% subject
to a maximum rate of Rs.15%o.

5. Impact Damage due to Insured’s own Rail/Road Vehicles, Fork lifts, Cranes, Stackers and
the like and articles dropped therefrom.

Policy may be extended to cover the above subject to following endorsement wordings:

“In consideration of an additional premium of Rs._____________, it is hereby agreed and declared

that the policy is extended to cover loss and/or damage caused due to impact by direct contact to
Insured’s property caused by Insured’s own Rail/Road Vehicles, Fork lifts, cranes, stackers and the
like and articles dropped therefrom.”

6. Spontaneous Combustion

Policy may be extended to cover the above subject to following endorsement wordings:

“In consideration of the payment by the Insured to the Company of additional premium of Rs.
____________ the Company agrees notwithstanding what is stated in the printed exclusions of this
policy to the contrary that the insurance by (items …....) of this policy shall extend to include loss or
damage by fire only of or to the property insured caused by its own fermentation, natural heating or
spontaneous combustion.”
N.B.: The expression ‘by fire only’ in the endorsement above must not be omitted under any
circumstances.

7. Omission to Insure additions, alterations or extensions

Policy may be extended to cover the above subject to following endorsement wordings

The Insurance by this Policy extends to cover Buildings and/or Machinery, Plant and other
Contents as defined in Columns......... hereof which the insured may erect or acquire or for which
they may become responsible :-

a) at the within described premises

b) for use as factories

i) The liability under this Extension shall not exceed in respect of (a) above, 5% of the
Sum Insured by each item, in respect of (b) above, 5% of the Sum Insured by item
No..........

ii) The Insured shall notify the Insurer of each additional insurance as soon as it shall
come to their knowledge and shall pay the appropriate additional premium thereon
from the date of inception.

iii) Following the advice of any additional insurance as aforesaid, cover by this
extension shall be fully reinstated.

1)No liability shall attach to the insurers in respect of any Building, Machinery, Plant or
other Contents while such property is otherwise insured. All new additions to Buildings
and/or Machinery and Plant not specifically insured/included during the currency of the
policy should be declared at the end of the year and suitable additional premium paid
on pro rata basis from the date of completion of the construction /erection of additions
may be suitably adjusted.

If the insured fails to declare the values of such additions within 30 days after the expiry of the
policy, there shall be no refund of the advance premium collected.

2)Other Contents’ in the above clause shall mean ‘Furniture and Fittings’ and does not
include ‘Stocks’.

3)This clause should be incorporated at the time of issuing the policy.

8. Earthquake (Fire and Shock)

Policy may be extended to cover the above subject to following endorsement wordings:

If option to delete STFI peril is exercised

“In consideration of the payment by the Insured to the Company of the sum of ____________
additional premium, it is hereby agreed and declared that notwithstanding anything stated in the
printed exclusions of this policy to the contrary, this Insurance is extended to cover loss or damage
(including loss or damage by fire) to any of the property Insured by this policy occasioned by
earthquake including Landslide / Rockslide resulting therefrom but excluding flood or overflow of
the sea, lakes, reservoirs and rivers caused by Earthquake.

Provided always that all the conditions of this policy shall apply (except in so far as they may be
hereby expressly varied) and that any reference therein to loss or damage by fire shall be deemed
to apply also to loss or damage directly caused by any of the perils which this insurance extends to
include by virtue of this endorsement.”

If option to delete STFI peril is not exercised

“In consideration of the payment by the Insured to the Company of the sum of ____________
additional premium, it is hereby agreed and declared that notwithstanding anything stated in the
printed exclusions of this policy to the contrary, this Insurance is extended to cover loss or damage
(including loss or damage by fire) to any of the property Insured by this policy occasioned by or
through or in consequence of earthquake including flood or overflow of the sea, lakes, reservoirs
and rivers and/or Landslide / Rockslide resulting there from.

Provided always that all the conditions of this policy shall apply (except in so far as they may be
hereby expressly varied) and that any reference therein to loss or damage by fire shall be deemed
to apply also to loss or damage directly caused by any of the perils which this insurance extends to
include by virtue of this endorsement.”

Special conditions

1) Excess clause
5% of each and every claim subject to a minimum of Rs.10,000/.
2) Extension cover shall be granted only if the entire property in one complex / compound /
location covered under the policy is extended to cover this risk and the Sum Insured for this
extension is identical to the Sum Insured against the risk covered under main policy except for the
value of the plinth and foundations of the building(s).
3) Onus of proof
In the event of the Insured making any claim for loss or damage under this policy he must (if so
required by the Company) prove that the loss or damage was occasioned by or through or in
consequence of earthquake.

9. SPOILAGE MATERIAL DAMAGE COVER

Policy may be extended to include spoilage risk subject to the following conditions:-

The cover shall extend to material damage, i.e.

(i) Loss of stock in process; and
(ii) Damage to machinery, containers and equipment (including cost of removal of debris and
cleaning) and shall be provided by a separate item of the SFSP Policy subject to the
Conditions that the perils causing the spoilage should be the same as those covered under
the Policy.
The following endorsement wording shall be used.

“In consideration of the payment of an additional premium of Rs. _______ it is hereby agreed and
declared that, notwithstanding anything contained to the contrary, in the within written Policy, the
insurance under Item No....... of this policy shall extend to cover loss or damage by Spoilage
resulting from the retardation or interruption or cessation of any process or operation caused by any
of the perils covered under this Policy, provided that liability for destruction of or damage to the
property insured described in the schedule to this policy, or any part of such property, is first
admitted by the Company.

PROVIDED ALWAYS THAT all the conditions (except in so far as they may be hereby expressly
varied) shall apply as if they had been incorporated herein and that any reference therein to the
loss or damage caused by insured perils shall be deemed to apply also to loss or damage caused
by Spoilage which peril this insurance extends to include by virtue of this Endorsement.”

SPECIAL CONDITIONS

For the purpose of this Endorsement but no otherwise, the following special conditions shall apply :

Average: If the property hereby insured against spoilage shall, at the time of occurrence of any
loss or damage, be collectively of greater value than the sum insured on machinery, containers,
equipment and stocks in the specified blocks, then the Insured shall be considered as being his
own insurer for the difference and shall bear rateable proportion of the loss accordingly. Every
item, if more than one, of the Policy shall be separately subject to this condition.
PROVIDED THAT it is hereby further expressly agreed and declared that the liability of the
Company shall in no case under this endorsement and the Policy exceed the sum insured by item
Nos.____________ of this Policy.

Sum to be Insured:

The cover must be for all stocks and machinery, container and equipment in specified blocks,
specified sums being declared for each block and must be made subject to ‘Average’.

10. LEAKAGE AND CONTAMINATION COVER

SCOPE

Policy may be extended to include the risks of (a) accidental leakage and contamination or (b)
accidental leakage.

The extension will apply to oils and chemicals only. It will not apply to any other commodity.

ENDORSEMENTS

It shall be obligatory to use one of the following endorsement wordings:

(A) WHERE LEAKAGE AND CONTAMINATION COVER IS GRANTED :

“In consideration of the payment of an additional premium of Rs............. it is hereby agreed and
declared that the Insurance under this policy shall, subject to terms, conditions and exclusions of
this
policy and also subject to terms, conditions and exclusions hereinafter contained, extend to include
the physical loss of oil/chemical by leakage from its container by accidental means and all
accidental contaminations by contact with foreign matter.”

PROVIDED always that this policy does not cover:

a) Loss by Contamination through Improper Handling or Controls by Insured’s own

Employees;
b) Loss resulting from loss of use, loss of earnings, delay or loss of markets or other
consequential or indirect loss or damage of any kind or description whatsoever;
c) Loss resulting from any kind of infidelity or dishonesty on the part of the Insured or any of
their employees, inventory shortage, mysterious disappearance or unexplained loss;
d) Loss by burglary or theft or any attempt thereat;
e) Loss resulting from processing or faulty workmanship;
f) Loss resulting from shrinkage, evaporation, loss of weight unless caused by a peril not
otherwise excluded;
g) Any legal and/or contractual liability arising from any cause whatsoever; and
consequential Loss of any nature.

(B) WHERE LEAKAGE COVER ALONE IS GRANTED :

“In consideration of the payment of an additional premium of Rs............ it is hereby agreed and
declared that the Insurance under this policy shall, subject to terms, conditions and exclusions of
this Policy and also subject to terms, conditions and exclusions hereinafter contained, extend to
include the physical loss of oil/chemical by leakage from its container by accidental means.

PROVIDED always that this policy does not cover :

a) loss resulting from loss of use, loss of earnings, delay or loss of markets or other
consequential or indirect loss or damage of any kind or description whatsoever;
b) loss resulting from any kind of infidelity or dishonesty on the part of the Insured or any of
their employees, inventory shortage, mysterious disappearance or unexplained loss;
c) loss by burglary or theft or any attempt thereat;
 d) loss resulting from processing or faulty workmanship;
e) loss resulting from shrinkage, evaporation, loss of weight unless caused by a peril not
otherwise excluded;
f) any legal and/or contractual liability arising from any cause whatsoever; and
g) Consequential Loss of any nature.

SPECIAL CONDITIONS : (Applicable to A and B)

i) The cover under this endorsement shall attach only on or after the receipt of the insured subject
matter in land tanks as described in the policy and subject to lodgment with the company by
Insured of a certificate obtained by them at their own expense from a competent approved and
independent agency/surveyor as to the purity and quality of the subject matter herein insured.
ii) Before the commencement of pumping and/or decanting operations, the Insured shall arrange
at their own expense sampling and quality / purity certification by competent, approved and
independent agency / surveyor for such distinct lot, batch or tank load ex-ocean vessel of insured
subject matter and shall pump/decant only such material as is pure and without contaminants.
iii) The insured shall at their own expense arrange inspection and certification from competent
approved and independent agency/surveyor as to the cleanliness and fitness of the pipe lines,
pumping equipment and the receiving land tanks to carry and/or receive the insured subject
matter, prior to the commencement of pumping, decanting, receiving and/or storage operations.
Such certification as mentioned above should, inter alia, confirm that the pumping, carrying and
storage equipment facilities and tanks are free from impurities, contaminants and/or residue or
left-overs from previous use of equipment, facilities or storage tanks. As concerning the receiving
land tanks an initial certificate of fitness to receive and store the insured material shall be deemed
to satisfy the above condition in so far as such tanks are concerned. However, a fresh
certification as mentioned above would be required in the event of the said tanks being empty
and fresh stocks are subsequently pumped/decanted in during the currency of this insurance.
iv) In case of loss to property insured hereunder, the basis of adjustment shall be the market
value at the time and place of loss.
v) It is understood and agreed that all loss or damage to property occurring during any one period
of seventy-two consecutive hours during the currency of this policy directly caused by earthquake
shock shall be deemed to have been caused by single earthquake and therefore to constitute
one loss for the purpose of this policy, the Insured shall select a time from which any such period
shall commence but no two such selected periods shall overlap.
vi) All salvage recoveries and payments recovered or received subsequent to a loss settlement
under this policy shall be applied as if recovered or received prior to the said settlement and all
necessary adjustment shall be made by the parties hereto.
vii) If any breach of a clause or condition in this contract or policy of insurance shall occur prior to
a loss under this Policy, such breach shall not void the policy nor avail the company to avoid the
liability unless such breach shall exist at the time of such a loss under this contract or policy, it
being understood that such breach of a clause or condition is applicable only to the specific
property to which the condition or clause has reference and in respect of which such breach
occurred.
viii) Each claim for loss or damage shall be adjusted separately and each claim is subject to an
excess of 1% on each tank with a minimum of Rs. 60,000/- each loss.
ix) If the property hereby insured shall at the time of the operation of a peril insured hereunder,
be collectively of greater value than the sum insured thereof, then the insured shall be considered
as being his own insurer for the difference and shall bear a rateable proportion of the loss
accordingly. Every item, if more than one, of the policy shall be separately subject to this
condition
NOTE: SPECIAL CONDITIONS (i), (ii) AND (iii) ARE NOT APPLICABLE WHERE LEAKAGE
COVER ALONE IS GRANTED.

11. TEMPORARY REMOVAL OF STOCKS CLAUSE

It is agreed that the stock insured hereby not exceeding 10% of the total sum insured of such stock
is covered while temporarily removed to any other premises for purposes of fabrication or
processing or finishing or other similar purposes. This extension does not apply to stock if and so
far as it is otherwise insured.
The pro-rata condition of average should be applied to the limit of stocks temporarily removed as
well as to the total sum insured of such stock under the policy.

12. LOSS OF RENT CLAUSE

POLICY may be extended to cover the above subject to following :

Where loss of rent caused by Insured Perils is covered, the following Rent Clause should be
inserted in the Policy:-

“The insurance on rent applies only if (any of) the said building(s) or any part thereof is unfit for
occupation in consequence of its destruction or damage by the perils insured against and then the
amount payable shall not exceed such portion of the sum insured on Rent as the period necessary
for reinstatement bears to the term of the Rent Insured”.

13. INSURANCE OF ADDITIONAL EXPENSES OF RENT FOR AN ALTERNATIVE

ACCOMMODATION

Policy may be extended to cover the above subject to following :

Additional expenses of rent for an alternative accommodation in respect of non-manufacturing

risks may be covered on the following basis :

a) The cover may be granted for non-manufacturing premises only.

b) The cover may be granted under the Policy and not under Consequential Loss (Fire)
Policy.

c) The period of Indemnity may be limited to the period during which the original premises
remain untenantable as a result of occurrence of perils insured against. Maximum indemnity
period not to exceed 3 (three) years.

d) The additional expense recoverable under the policy may be additional rent actually paid
i.e. the difference between the new and the original rent only.

e) Certificate from the Local Municipal Authority or an Architect to the effect that premises
in question are untenantable will be accepted as adequate proof of the fact that the premises,
in fact, have become untenantable.

f) Insurance should be granted against Fire, Riot, Strike, Malicious and Terrorist Damage
and Earthquake (Fire & Shock) and other Extraneous Perils. Cover against Riot, Strike,
Malicious and Terrorist Damage should be granted only if it involves actual physical damage
to the building. The cover does not intend to pay, if for instance, the insured’s entry is barred
by strikers, demonstrators and similar occurrences.

g) The cover may be limited to buildings other than those of “Kutcha” construction.

h) The area for alternative accommodation may be equivalent to the area presently
occupied. However, no restriction will apply in respect of locality for the alternative
accommodation, so long as the alternative accommodation is taken in the same city of town.

i) Cover may be permitted to the tenant as also to the Owner-Occupant. Further, in

respect of the Owner-Occupant, the alternative accommodation may be limited to the area
presently under his occupation.

j) For the Owner-Occupant, since he will not be paying any rent based on the area
occupied by him (in comparison with the actual rent being paid by the tenant in the same
building or similar buildings in the same locality) the standard rent based on the rateable
values fixed by Municipal/Revenue Authorities for tax purposes may be treated as the original
rent for the purpose of this insurance.
 k) It will be compulsory for
i. the Owner-Occupant to insure both building and contents.
ii. the tenant to insure the contents of the premises for which he is seeking this
extension

Endorsement wording for insurance of rent for alternative accommodation Tenant or

Owner-Occupant
It is hereby declared that in the event of the premises described in the policy and occupied by
the insured, hereinafter referred to as ‘PREMISES’ being destroyed or damaged by any Insured
Peril as to become unfit for occupation and the insured in consequence taking up alternative
accommodation, the Company shall, subject to special conditions set out herein, indemnify the
insured against the additional rent (as explained herein) which the insured is called upon to bear
for the period beginning from the date of operation of any of the Insured Perils until the
‘PREMISES’ is rendered fit for occupation such period not exceeding such reasonable time as is
required to restore the premises with due diligence to a condition fit for occupation or the
maximum indemnity period of ......... months whichever is earlier.

Provided that the liability of the Company shall not exceed Rs. .............. the sum insured hereby.

Provided further that if the sum produced by applying the monthly additional rent, borne by the
insured for the alternative accommodation to the maximum indemnity period is more than the
Sum Insured hereby, the liability of the Company shall be proportionately reduced.

SPECIAL CONDITIONS :

1. This insurance shall apply subject to the condition that the PREMISES occupied by the
insured, whether as owner or tenant, forms part of a building not being “Kutcha” Construction.

2. If the area of alternative accommodation taken by the insured is more than the area of
the PREMISES occupied by the insured, the additional rent borne by the insured for the purpose
of this insurance shall be deemed to be that proportion of the additional rent actually borne by
the insured as the area of the PREMISES which was in the insured’s occupation bears to the
area of the alternative accommodation taken by the insured. The insured shall be at liberty to
take alternative accommodation in any locality so long as it is within the Municipal limit of the city
or town in which the PREMISES is situated.

EXPLANATION

Additional Rent: If the insured is the Owner-Occupant, the additional rent borne by him is
arrived at after deducting the standard rent of the premises from the actual rent paid for the
alternative accommodation. The standard rent shall be based on the ratable values fixed by the
Municipal/Revenue authorities for tax purposes.

If the insured is a tenant only and for safeguarding his legal tenancy rights is obliged to pay rent
for the premises even during the period when it is not fit for occupation, the additional rent borne
by him is the actual rent for the alternative accommodation.

If the insured is a tenant and is not obliged to pay rent for the premises during the period when it
is not fit for occupation, the additional rent borne by him is the actual rent paid for alternative
accommodation taken less the rent which he was paying for the premises immediately prior to
the same being damaged or destroyed by Insured Perils and rendered unfit for occupation

14. Start up Expenses

Policy may be extended subject to the following endorsement wordings:

“It is hereby agreed and declared that this policy extends to cover start-up costs necessarily and
reasonably incurred by the insured consequent upon a loss or damage covered by this policy.”
 ANNEXURE - A

CLAUSES

The following clauses shall be attached to the policy wherever they are required .

A AGREED BANK CLAUSE

All policies in which a Bank/Financial Institution has interest shall be issued in the name of
Bank/Financial Institution and owner or mortgagor and shall contain a suitable clause to protect
their interest. A specimen copy of the Clause is given hereunder.

"`It is hereby declared and agreed:-

i. That upon any monies becoming payable under this policy the same shall be paid by the
Company to the Bank and such part of any monies so paid as may relate to the interests of
other parties insured hereunder shall be received by the Bank as Agents for such other
parties.

ii. That the receipts of the Bank shall be complete discharge of the Company therefore and
shall be binding on all the parties insured hereunder.

N.B: The Bank shall mean the first named Financial Institution/ Bank named in the policy.

iii. That if and whenever any notice shall be required to be given or other communication shall
be required to be made by the Company to the insured or any of them in any manner arising
under or in connection with this policy such notice or other communication shall be deemed
to have been sufficiently given or made if given or made to the Bank.

iv. That any adjustment, settlement, compromise or reference to arbitration in connection with
any dispute between the Company and the insured or any of them arising under or in
connection with this policy if made by the Bank shall be valid and binding on all parties
insured hereunder but not so as to impair rights of the Bank to recover the full amount of
any claim it may have on other parties insured hereunder.

v. That this insurance so far only as it relates to the interest of the Bank therein shall not cease
to attach to any of the insured property by reason of operation of condition 3 of the Policy
except where a breach of the condition has been committed by the Bank or its duly
authorised agents or servants and this insurance shall not be invalidated by any act or
omission on the part of any other party insured hereunder whereby the risk is increased or
by anything being done to upon or any building hereby insured or any building in which the
goods insured under the policy are stored without the knowledge of the Bank provided
always that the Bank shall notify the Company of any change of ownership or alterations or
increase of hazards not permitted by this insurance as soon as the same shall come to its
knowledge and shall on demand pay to the Company necessary additional premium from
the time when such increase of risks first took place and

vi. It is further agreed that whenever the Company shall pay the Bank any sum in respect of
loss or damage under this policy and shall claim that as to the Mortgagor or owner no
liability therefore existed, the Company shall become legally subrogated to all the rights of
the Bank to the extent of such payments but not so as to impair the right of the Bank to
recover the full amount of any claim it may have on such Mortgagor or Owner or any other
party or parties insured hereunder or from any securities or funds available.

N.B: In cases where the name of any Central Government or State Government owned and / or
sponsored Industrial Financing or Rehabilitation Financing Corporations and /or Unit Trust of India
or General Insurance Corporation of India and/or its subsidiaries or LIC of India/ any Financial
Institution is included in the title of the Fire Policy as mortgagees, the above Agreed Bank Clause
may be incorporated in the Policy substituting the name of such institution in place of the word
'Bank' in the said clause.
B CONTRACT PRICE INSURANCE CLAUSE

In the case of insurance of imported goods only (and not for goods of local manufacture) which
are sold under a contract which is cancelled either wholly or to the extent of loss or damage, it is
permissible to issue a policy on the basis of Contract Price and the following clause shall be
inserted in the Policy.

"It is hereby agreed and declared that in respect only of goods sold but not delivered for which
the insured is responsible and with regard to which under the conditions of sale, the sale contract
is by reason of the perils covered under the Policy, cancelled either wholly or to the extent of the
loss or damage, the liability of the company shall be based on the contract price and for the
purpose of average the value of all goods to which the clause would in the event of loss or
damage be applicable shall be ascertained on the same basis."

C DESIGNATION OF PROPERTY CLAUSE:

For the purpose of determining, where necessary, the item under which any property is insured,
the insurers agree to accept the designation under which the property has been entered in the
insured's books.

D REINSTATEMENT VALUE POLICIES

Reinstatement value insurance may be granted on Buildings, Machinery Furniture, Fixture and
Fittings only subject to the incorporation of the following memorandum in the policy:

"It is hereby declared and agreed that in the event of the property insured under (Item Nos......of
.........) within the policy being destroyed or damaged, the basis upon which the amount payable
under (each of the said items of) the policy is to be calculated shall be cost of replacing or
reinstating on the same site or any other site with property of the same kind or type but not
superior to or more extensive than the insured property when new as on date of the loss, subject
to the following Special Provisions and subject also to the terms and conditions of the policy
except in so far as the same may be varied hereby."

Special Provisions

1. The work of replacement or reinstatement (which may be carried out upon another site and
in any manner suitable to the requirements of the insured subject to the liability of the
Company not being thereby increased) must be commenced and carried out with
reasonable dispatch and in any case must be completed within 12 months after the
destruction or damage or within such further time as the Company may in writing allow,
otherwise no payment beyond the amount which would have been payable under the policy
if this memorandum had not been incorporated therein shall be made.

1. Until expenditure has been incurred by the Insured in replacing or reinstating the
property destroyed or damaged the Company shall not be liable for any payment in
excess of the amount which would have been payable under the policy if this
memorandum had not been incorporated therein.

2. If at the time of replacement or reinstatement the sum representing the cost which would
have been incurred in replacement or reinstatement if the whole of the property covered
had been destroyed, exceeds the Sum Insured thereon or at the commencement of any
destruction or damage to such property by any of the perils insured against by the policy,
then the insured shall be considered as being his own insurer for the excess and shall
bear a rateable proportion of the loss accordingly. Each item of the policy (if more than
one) to which this memorandum applies shall be separately subject to the foregoing
provision.

3. This Memorandum shall be without force or effect if

a) the Insured fails to intimate to the Company within 6 months from the date of destruction
 or damage or such further time as the Company may in writing allow his intention to
replace or reinstate the property destroyed or damaged.

(b) the Insured is unable or unwilling to replace or reinstate the property destroyed or
damaged on the same or another site.

E LOCAL AUTHORITIES CLAUSE

Reinstatement Value Policy may be extended to cover additional cost of reinstatement solely by
reason of the necessity to comply with the regulations of local authority by incorporating the
following clause in the policy.

"The insurance by this policy extends to include such additional cost of reinstatement of the
destroyed or damaged property hereby insured as may be incurred solely by reason of the
necessity to comply with the Building or other Regulations under or framed in pursuance of any
act of Parliament or with Bye-laws of any Municipal or Local authority provided that

1) The amount recoverable under this extension shall not include :

a) the cost incurred in complying with any of the aforesaid Regulations or Bye-laws,

i) in respect of destruction or damage occurring prior to the granting of this extension,

ii) in respect of destruction or damage not insured by the policy,

iii) under which notice has been served upon the insured prior to the happening of the
destruction of damage,

iv) in respect of undamaged property or undamaged portions of property other than

foundations (unless foundations are specifically excluded from the insurance by this
policy) of that portion of the property destroyed or damaged,

b)the additional cost that would have been required to make good the property damaged or
destroyed to a condition equal to its condition when new had the necessity to comply with any
of the aforesaid Regulations of Bye-laws not arisen,

c)the amount of any rate, tax, duty, development or other charge or assessment arising out of
capital appreciation which may be payable in respect of the property or by the owner thereof
by reason of compliance with any of the aforesaid Regulations or Bye-laws.

2) The work of reinstatement must be commenced and carried out with reasonable dispatch
and in any case must be completed within twelve months after the destruction or damage or
within such further time as the Insurers may (during the said twelve months) in writing allow
and may be carried out wholly or partially upon another site (if the aforesaid Regulations or
Bye-laws so necessitate) subject to the liability of the Insurer under this extension not being
thereby increased.

3) If the liability of the insurer under (any item of) the policy apart from this extension shall be
reduced by the application of any of the terms and conditions of the policy then the liability of
the Insurers under this extension (in respect of any such item) shall be reduced in like
proportion.

4) The total amount recoverable under any item of the policy shall not exceed the sum insured
thereby.

5) All the conditions of the policy except in so far as they may be hereby expressly varied shall
apply as if they had been incorporated herein."

6) No additional premium shall be charged for inclusion of this clause in this policy.
F ESCALATION CLAUSE

The following Clause shall be used :

“In consideration of the payment of an additional premium amounting to 50% of the

premium produced by applying the specified percentage to the first or the annual
premium as appropriate on the under noted items(s) the Sum(s) Insured thereby
shall, during the period of insurance, be increased each day by an amount
representing 1/365th of the specified percentage increase per annum.

Item Number Specified percentage increase per annum

---------------- ------------------------------------------------

Unless specifically agreed to the contrary the provisions of this clause shall only apply
to the sums insured in force at the commencement of each period of insurance.

At each renewal date the insured shall notify the Insurers :-

(i) the sums to be insured under each item above, but in the absence of such
instructions the Sums Insured by the above items shall be those stated on the policy (as
amended by any endorsement effective prior to the aforesaid renewal date) to which
shall be added the increases which have accrued under this Clause during the period of
insurance upto that renewal date, and

(ii) the specified percentage increase(s) required for the forthcoming period of insurance, but
in the absence of instructions to the contrary prior to renewal date the existing
percentage increase shall apply for the period of insurance from renewal.

All the conditions of the policy in so far as they may be hereby expressly varied shall apply as
if they had been incorporated herein.”

G ARCHITECTS, SURVEYORS AND CONSULTING ENGINEER’S FEES (upto 3% of the claim

amount)

The following Clause shall be used :

“It is hereby declared and understood that the expenses incurred towards Architects, Surveyors
and Consulting Engineers fees for plans, specification tenders, quantities and services in
connection with the superintendence of the reinstatement for the Building, Machinery,
Accessories and equipment insured under this policy is covered upto 3% of the adjusted loss, but
it is understood that this does not include any costs in connection with the preparation of the
Insured’s claim or estimate of loss in the event of damage by insured perils”.

H REMOVAL OF DEBRIS CLAUSE (upto 1% of the claim amount)

The following Clause shall be used :

“It is hereby declared and agreed that the expenses incurred upto 1% of the claim amount is
included in the sum insured on:

(a) Removal of debris from the premises of the Insured;

(b) dismantling or demolishing;
(c) shoring up or propping.”

Note : (b) & (c) above should be deleted when neither Building nor Machinery are covered.
I FLOATER CLAUSE

The following clause shall be attached for floater policy(ies) :

“In consideration of Floater Extra charged over and above the policy rate the S.I. in aggregate
under the policy is available for any one, more, or all locations as specified in respect of movable
property.

At all times during the currency of this policy the insured should have a good internal audit and
accounting procedure under which the total amount at risk and the locations can be established
at any particular time if required.

The changes in address of locations specifically declared at inception should be communicated”

J DECLARATION CLAUSE

The following clause shall be attached to Declaration Policy(ies).

1) In consideration of the premium by this policy being provisional in that it is subject to

adjustment on expiry of each period of insurance.

“The Insured agrees to declare to the ....................... Company in writing the value of his stocks
(other than retail) less any amount insured by Policies other than declaration policies, in each
separate building or non-communicating compartment or in the open on the following basis
namely 1] average of the values at risk on each day of the month or 2] the highest value at risk
during the month and to make such declaration(s) latest by the last day of the succeeding month.
Such declaration(s) shall be signed by the Insured or by a responsible person authorised to sign
on his behalf.

If other policies on declaration basis cover the stocks hereby insured, the declarations shall be
made so as to apportion to each policy a share of the value of the stocks insured under such
declaration policies, PRO RATA to the respective amounts named in the policies.

In the event of a declaration not being made latest by the last day of the succeeding month ,
then the insured shall be deemed to have declared the Sum Insured hereby as the value at
risk.

On the expiry of each period of insurance the premium shall be calculated at the rate of
................... (insert the Tariff rate) on the average Sum Insured namely, the total of the values
declared or deemed to have been declared divided by the number of declarations deemed to
have been made.

If the resultant premium is less than the provisional premium, the difference shall be repaid to the
Insured but such repayment shall not exceed 50% of the provisional premium.

Further it is hereby agreed and understood that no reduction in sum insured shall be allowed
during the currency of the policy

2) The basis of value for declarations shall be the market value and any loss hereunder shall be
settled on the basis of the Market Value immediately anterior to the loss.

3) If at the time of any loss, there be any subsisting insurance or insurances on other than a
declaration basis, whether effected by the Insured or by any other person or persons,
covering the stocks hereby insured, this policy shall apply only to the excess of the value of
such stocks at the time of the loss over the Sum Insured by such other insurance or
insurances, and this Company shall not be liable to pay or contribute more than that
proportion of such loss which such excess (or, if there be other declaration insurances
covering the same stocks, a rateable proportion of such excess) but not exceeding the Sum
Insured hereby, bears to the total value of the stocks.
 4) If after the occurrence of a loss it is found that the amount of the last declaration previous to
the loss is less than the amount that ought to have been declared, then the amount which would
have been recoverable by the Insured shall be reduced in such proportion as the amount of the
said last declaration bears to the amount that ought to have been declared.

5) Notwithstanding the occurrence of loss it is understood that the Sum Insured will be
maintained at all times during the currency of the policy and the Insured therefore undertakes
to pay extra premium on the amount of any loss pro rata from the date of such loss to the
expiry of the period of insurance, the premium being calculated at the rate applicable to the
stocks destroyed and such extra premium shall not be take into account in, and shall be
distinct from, the final adjustment of premium.

6) In event of this policy being cancelled by the Insured during its currency (whether stocks exist
or not) the premium to be retained by the Company shall be the appropriate short period
premium calculated on the average amount insured upto the date of cancellment, or 50% of the
provisional premium whichever is greater. Notwithstanding the above, if the policy is cancelled by
the insured after a loss has occurred, the premium to be retained by the company shall be the
PRO RATA proportion of the premium calculated on the average amount insured upto the date
of cancellation plus the PRO RATA proportion of the premium from the date of loss to the expiry
of the period of insurance on the amount of loss paid, or 50% of the provisional premium
whichever is greater.

7) The maximum liability of the Company shall not exceed the Sum Insured hereby and premium
shall not be receivable on value in excess thereof. The Sum Insured may, however, be
increased by prior agreement with the Company in which event the new Sum Insured and the
date from which it is effective will be recorded on the policy by endorsement. In the event of an
increase in the Sum Insured being agreed to, the Company shall charge on such increased sum
an additional provisional premium on a basis proportionate to the unexpired period of the policy
and upon expiry of each period of insurance the total provisional premium so paid shall be
adjusted as provided for in Clause 1 above. If during the currency of the policy, the rate for the
class of risk to which the insurance applies is revised, and an increase in the Sum Insured under
a Declaration Policy is agreed to, the Company shall charge on such increased sum an
additional provisional premium on a basis proportionate to the unexpired period of policy, at the
rate at which the insurance was originally effected and upon expiry of each period of insurance
the total provisional premium so paid shall be adjusted as provided for in Clause 1 above.

8) If the stocks hereby insured shall at the time of loss be collectively of greater value than the
Sum Insured thereon, then the Insured shall be considered as being his own insurer for the
difference and shall bear a rateable proportion of the loss accordingly. Every item, if more than
one, on stock shall be separately subject to this condition.

9) It is warranted that every other policy on a declaration basis covering the stocks insured
hereby shall be identical in wording with this policy.

10) This insurance is subject in all respects to the printed conditions of the policy except in so far
as they may be varied by the above conditions.

K VOLUNTARY DEDUCTIBLE CLAUSE

The following clause shall be attached to the policy(ies) in case the insured accepts the
deductible and the discount therefor:

“It is hereby declared and agreed that the insured having opted a voluntary deductible of
Rs.--------- out of net amount of each and every admissible claim under the fire policy(ies)
covering the said premises, the company has allowed a discount of ----% on the final premium
payable for the policies and Add on Covers.

It is further agreed that the above voluntary deductible opted shall be in addition to compulsory
exclusion stipulated under “General exclusions” attached to the policy(ies) and/or for add-on
covers.”
 ANNEXURE - B

PROPOSAL FOR STANDARD FIRE & SPECIAL PERILS POLICY

Acceptance of this proposal is subject to the rules & regulations of
All India Fire Tariff
(The property proposed for insurance is not covered until the
proposal is accepted and premium paid)

Divisional office address & code

Development Officer’s Name & Code
Agents Name & Code

DETAILS ABOUT PROPOSER

1) Name Of Proposer

2) Address Of Proposer including their phone, fax No. and e-mail

address

3) Business Of Proposer

4) Paid up Capital of the firm

4. 4 5) Policy to be Issued in favour of

(list out all the parties who have insurable interest) including the
financial institutions.

6) Location of risk to be covered - full postal address with pincode

7) Period of Insurance From

To

8) Would you like to delete any of following covers from the basic
cover?

a. Flood, Cyclone, group of

perils Yes / No
b. Riot, Strike & Malicious
damage, Terrorism Yes / No

9) Would you like to cover Plinth & Foundation along with your buildings Yes / No

10) Add-On Covers Required

Architects consulting & Engineers Fees ( in excess of 3% claim amount) Yes/no

Debris Removal ( in excess of 1% claim amount) Yes/no
Deterioration of Stocks in cold storage premises on account of

a) Accidental power failures due to damage at power station due to an insured

peril; Yes/no
b) Deterioration of stocks in cold storage premises due to change in temperature
arising out of loss or damage to the cold storage machinery(ies) in the Insured’s
premises due to operation of insured peril. Yes/no

Forest Fire Yes/no

Impact damage due to insured’s own Rail/Road vehicles etc: Yes/no
Spontaneous Combustion Yes/no
Omission to Insure additions etc. Yes/no
Earthquake(fire and shock) Yes/no
Spoilage material cover Yes/no
Leakage and contamination cover Yes/no
Temporary removal of stocks Yes/no
Loss of rent Yes/no
Additional expenses of rent for an alternate accommodation Yes/no
Start-up expenses Yes/no
11) Whether you have insured the same property with any other Insurance Company
with the same type of coverage. (Give details)
12) Whether Insurance was declined by any other Company or imposed any Special
Conditions (Give details)
13) Premium / Claim details for the past 36 months excluding the Premium Claims
expiring policy period

DETAILS ABOUT BUSINESS COVERED AT THE INSURED LOCATION

14) The Insured property is

Residence,Office,Shops,Hotels etc Yes / No

Industrial/Manufacturing risks Yes/No
Storages outside industrial risks Yes / No
Tanks / Gas Holders outside Industrial Manufacturing risks Yes / No
Utilities located outside Industrial Manufacturing risks Yes / No

15) If used as Shop please declare whether the goods handled are as per
the following list. If yes, whether the stock value will exceed 5% of shops value

1.Celluloid goods, 2.Coir Loose, 3.Crackers & Fire Works, 4.Explosives of any kind, 5.Hay/Straw,
6.Hemp, 7.Jute Loose, 8.Matches, 9.Methylated Spirit, 10.Nitro-Cellulose Plastics,
11.Oils/Ether/Industrial Solvents and other inflammable liquids flashing at and below 32 Deg.C
(Closed Cup test), 12.Paints with inflammable base having flash point below 32 Deg.C (Closed
Cup test) - Other than in sealed tins or drums, 13.Varnishes having a Flash point below 32
Deg.C (Closed Cup test) - Other than in sealed tins or drums,14.Disinfectant liquids and liquid
insecticides - Other than in sealed tins or drums,15.Vegetable fibres of any kind including Rayon
Fibre.

16) .If used as warehouse / godown (not located in a manufacturing unit)

please give the list of goods stored

17) If used as an Industrial Manufacturing unit give

products manufactured at the location proposed.(detailed
block plan showing various facilities to be enclosed)
 18) If used as an Industrial Manufacturing unit, please
state whether the factory is working or silent ?

19) Fire Protection devices installed Please Tick the correct answer in
the box below

Portable Extinguishers Yes/No

Small bore hose reels Yes/No
Trailer Pumps/Fire engines Yes/No
a) List out the various blocks and indicate
the type of protection provided for each Hydrant System Yes/No
block. Sprinkler System Yes/No
b) Indicate whether Annual Maintenance contract for Fixed Water Spray System Yes/No
the Appliances is in force : Yes/No

Foam systems Yes/No

Fire alarm systems Yes/No
Gas flooding systems Yes/No

20) The basis proposed for insurance

( (Bldg/ machinery/ FFF )

Market Value basis Yes / No

Reinstatement Value Basis Yes / No

Whether escalation clause is required Yes / No

21) a) Construction Details Please state material used

i) Walls ____________
ii) Floor ____________
iii) Roof ____________

b) Height of Building ________ Meters

c) Age of Building Less than 5 years 10-20 years

5-10 years above 20

years

Note: Buildings having walls and/ or roofs of wooden planks/thatched leaves and/or grass/hay
of any kind/bamboo/plastic cloth/asphalt cloth/canvas/tarpaulin and the like are treated as
“Kutcha” consruction.

22) Building wise values (Please include the kutcha buildings also in this list and give
individual values against such buildings)

Description Amount in
Of Block Rs
Building M F&F SSP* Propert Total AGE HT CONS
including & and * y to be (YRS) (MTS TRUCT
plinth A other insured ) ION
equipm separat
ents ely
 Total

** Indicates those stocks which are covered on normal basis and do not fall under Serial No.23
A,B, C and D below

23) Special Coverage for Stocks only

Please Tick in the box below and give the amount to be insured against each
A) On Floater Basis
Stocks at various locations (warehouses / godowns and /or open etc.,) can be covered on
floater basis for a single Sum Insured.
Tick Amount Rs.
Floater
Basis

B) On Declaration Basis
Stocks which fluctuate in value can be covered on (monthly) declaration basis.
Tick Amount Rs.
Declaration Basis
Note:
1.Minimum Sum Insured is Rs.1 Crore, and policy not issued on short period basis
2.Stocks in process & stocks stored at Railway sidings are not covered

C) On Floater Declaration Basis

Stocks which fluctuate in value as well as stored in various locations can be covered on
(monthly) floater declaration basis.
Tick Amount Rs.
Floater Declaration Basis
Note:
1.Minimum Sum Insured is Rs. 2 Crore
2.Stocks in process & stocks stored at Railway sidings are not covered

D) Stocks stored in open

Locations Amount Rs.
1. Stocks in open (located
outside the factory compound)

24) Total Sum Insured (as per relevant serial numbers shown against each)

Clause/ Risk Rate Rate Sum Premiu Risk Rate

Peril code code Insured m Code code
code
(Plinth &
Foundation)
Architects &
Engineers Fees
 Debris Removal
Deterioration of Stocks in
cold storage premises on
account of
a) Accidental power
failures due to damage
at power station due to
an insured peril;
b) Deterioration of stocks
in cold storage
premises due to
change in temperature
arising out of loss or
damage to the cold
storage machinery(ies)
in the Insured’s
premises due to
operation of insured
peril.
Forest Fire
Impact damage due to
Insured’s own vehicle
Spontaneous Combustion
Omission to Insure
additions, alteration,
extension
Earthquake
Spoilage material cover
Leakage and
contamination cover
Temporary removal of
stocks
Additional expenses of
rent for an alternate
accommodation
Building wise values
(Stocks Floater Basis)
(Stocks Declaration Basis)
(Stocks Floater
Declaration)
(Stocks in open - outside
factory compound)
Grand Total

25. Would you like to avail Discount for Voluntary Deductibles: Yes/ No
If the answer is Yes , indicate the choice of Deductible amount: Rs.------

Declaration by Insured
I/ We hereby declare that the statements made by me / us in this Proposal Form are true to the best
of my / our knowledge and belief and I / We hereby agree that this declaration shall form the basis of
the contract between me / us and the “__________________________________________.”

If any additions or alterations are carried out in the risk proposed after the submission of this proposal
form then the same should be conveyed to the insurers immediately.

Date Place
Recommendations of Signature of
Development Officer / Agent Proposer

Prohibition of Rebates ( Section 4) of the Insurance Act