This insurance is intended to cover contents of business premises against loss or damage by burglary and/or house breaking. It also covers damage to premises, caused by burglars, during the burglary or any attempt thereat if the insured is responsible for such repairs.
The entry could also follow assault or violence or threat of the same, to the
insured or to his employees or members of his family.
Normally the policy does not cover loss
due to theft or shoplifting which in most trades, is inevitable and must be regarded as not payable.
The policy does not cover loss or damage due to burglary, in which any member of the insured's
family of staff is concerned as principal or accessory. Any act committed by any person lawfully
present in the premises is also not insured.
Whenever possible, the property to be insured
will have to be itemized according to its nature. The value of the items will have to be inserted in
the schedule of the policy separately.
For example:
Stocks belonging to the insured and held in trust or on commission for which the insured is responsible
Furniture, fixtures and fittings
Cash, currency or valuables kept in locked standard safe or cash box in locked steel cupboard
Other items to be specified
It is desirable for an inspection to be made as to whether the safeguards to prevent entry into the premises by burglars are satisfactory. If not, further precautions must be taken. Normally, it is necessary to arrange for completion of an inspection report after obtaining necessary information. Particular attention must be paid to the following:
Stocks belonging to the insured and held in trust or on commission for which the insured is responsible
Furniture, fixtures and fittings
Cash, currency or valuables kept in locked standard safe or cash box in locked steel cupboard
Other items to be specified
In the case of a change of address during the currency of the policy, it is necessary for a survey of the new premises to be made in the same way. Subject to security arrangements being satisfactory, the policy can be endorsed to cover property at the new address.
The policy covers the contents contained within the premises mentioned in the policy schedule against loss or damage by burglary and/or house breaking. It extends to cover any damage to the said premised by the risks insured that should be made good by the insurer. The burglary policy can be extended to cover theft on payment of additional premium.
The policy does not cover loss or damage to or arising from or occasioned by:
War, warlike operation etc., civil war, mutiny, rebellion, revolution, insurance, riot, strike, civil commotion or loot, confiscation or detention by the order of any Government or Public Authorities, flood, hurricane, subterranean fire, earthquake and other similar convulsions of nature and atmospheric disturbance
By any of the insured's family or employees or any person lawfully in the premises. Or where such loss or damage has been expedited or in any way assisted or brought about by any inmate or member of such household staff as principal or accessory
Losses that the recoverable under fire or plate glass insurance policy
Goods held in trust or on commission or gold or silver articles, watches, jewellery, precious stones, medals, coins, curios, furs, sculptures, manuscripts, rare books, plans, patterns, models, moulds, designs, deeds, bonds, bills of exchange, promissory notes, money or securities for money, stamps or stamp collections, documents of title to property or business books unless specifically insured
Loss of money and/or other property abstracted from safe following use of the key to the said safe or any duplicate thereof belonging to the insured unless such key has been obtained by assault or violence or any threat
Nuclear risks
If there be any material alterations in the premises where by the risk is increased
If the interest of the insured in the property is passed on to others, otherwise than by will or operation of law
Loss arising from ionising radiation or contamination by radio activity from any source or any consequential loss / legal liability arising out of it
If the premises is left unoccupied for more than seven days consecutively
In case where bulk and heavier stocks are to be covered insurance on full
value basis need not be arranged. Here a first loss policy may be issued. Under this policy, the
sum insured may not be less than 10% of the total amount. This may be reduced in individual
cases. The condition of average is modified, as applicable to the percentage chosen of the
amount at risk. This amount is the maximum liability of the company.
The premium for this
insurance will be the basic premium for the first loss amount, plus an additional premium based
on a percentage of the premium rate so charged. This additional premium will be calculated on
the balance of the aggregate amount.
In case of insurance of fluctuating stocks, a declaration policy can be suggested on similar lines as in the case of corresponding fire policies. The declaration policies will have to be approved by regional offices. Deposit premium of 100% of the annual has to be submitted before the inception of risk.
Heterogeneous stock will have only one overall rate applied, keeping in mind the proportion of the various types of goods constituting the mix.
If sum insured exceeds Rs. 10 Lakhs in any one locations or for one client the rates may be scaled down on merits up to 25%. If probability of loss of entire property is very low, first loss policy may be suggested. One watchman on 24 hours, basis would merit a scaling down of rates up to 10%.
