Package or Umbrella policies
There are package or umbrella covers available which give, under a single document,
a combination of covers. For instance there are covers such as Householders Policy,
Shopkeepers Policy, Office Package policy etc that, under one policy, seek to cover
various physical assets including buildings, contents etc. Such policies, apart
from seeking to cover property may also include certain personal lines or liability
covers. Make sure you understand the complete details of cover and exclusions contained
in the policy you are considering. Package or Umbrella covers could have common
terms and conditions for all sections as also specific terms for specific sections
of the policy.
The most popular property insurance is the standard fire insurance policy. The fire
insurance policy offers protection against any unforeseen loss or damage to/destruction
of property due to fire or other perils covered under the policy. The different
types of property that could be covered under a fire insurance policy are dwellings,
offices, shops, hospitals, places of worship etc and their contents; industrial/manufacturing
risks and contents such as machinery, plants, equipment and accessories; goods including
raw material, material in process, semi-finished goods, finished goods, packing
materials etc in factories, godowns and in the open; utilities located outside industrial/manufacturing
risks; storage risks outside the compound of industrial risks; tank farms/gas holders
located outside the compound of industrial risks etc.
What a Fire Policy covers:
Thought it is called ‘Fire Insurance’, apart from the risk of fire, it also offers
cover against lightning, explosion/implosion, aircraft damage, riot, strike and
malicious damage, storm , cyclone, typhoon, hurricane, flood and inundation, impact
damage, subsidence and landslide including rockslide, bursting and/or overflowing
of water tanks, apparatus and pipes, missile testing operations, accidental leakage
from automatic sprinkler installations, bush fire etc.
What a Fire Policy excludes:
A fire insurance policy usually does not cover a certain amount known as “excess”
under the policy. Loss or damage caused by war and warlike operations, nuclear perils,
pollution or contamination, electrical/mechanical breakdown, burglary and housebreaking
are excluded. Certain perils like earthquake, spontaneous combustion etc can be
covered on payment of additional premium. Fire insurance policies are issued for
one year except for dwellings, where a policy may be issued for long term (with
a minimum period of three years).
A Burglary Insurance policy may be offered for a business enterprise or for a house.
The policy covers property contained in the premises including stocks/goods owned
or held in trust if specifically covered. It also covers cash, valuables, securities
kept in a locked safe or cash box in locked steel cupboard if you specifically request
Apart from offering cover for the contents in the premises, a Burglary Insurance
policy covers damage to your house or premises caused by burglars during burglary
or attempts at burglary. The Policy pays actual loss/damage to your insured property
caused by burglary/house breaking subject to the limit of Sum Insured. If Sum Insured
is not adequate, Policy pays only proportionate loss. Hence, you must ensure that
you value the property covered correctly to ensure that there is no underinsurance.
A Burglary Insurance Policy can generally be extended to cover Riot, Strike, Malicious
Damage and Theft.
What is not covered in a Burglary Insurance Policy?
Generally, the Policy will not pay for loss/damage to goods held in trust/commission
unless specifically covered, jewellery, curios, title deeds, business books unless
specifically insured; any amount that is recoverable under Fire/Plate glass insurance
policy; loss from a safe using a key or duplicate key, unless it is obtained by
violence or threat; Due to shop lifting, acts involving you/your family members/
your employees; due to War perils, Riot & Strike ( covered by payment of additional
premium), Acts of God, Nuclear perils.
All Risks Insurance
All Risks Insurance generally offers cover for jewellery and/or portable equipment
etc. This cover is generally offered selectively. The design of the policy may vary
from company to company. It is important to note that an All Risks policy is not
free from exclusions. So, the term “All Risks” doesn’t mean that anything and everything
What is generally excluded in All Risks Insurance?
Lookout for the exclusions—generally actions of moth, vermin, mildew, wear and tear
or repairs, dyeing or bleaching or any gradually operating cause , Mere breaking/
scratching or cracking of fragile items unless caused by accident to the means of
conveyance and Any mechanical or electrical breakdown/derangement except due to
accidental external means, Over winding, denting or internal damage to watches or
clocks, Thefts from cars except fully closed saloons Consequential losses, any legal
liability, War perils, nuclear risks, any government/ local authority action and
Any loss due to insured's action which has contributed to increase in risk are excluded
from the scope of the policy.
On payment of additional premium mechanical and/ or electrical/ electronic breakdown
extension may be offered.
Marine Cargo Insurance
Marine Cargo Insurance covers transits by Water, Air, Road or Rail, Registered Post
Parcel, Courier or a combination of two or more of these.
Who can take a Marine Cargo Insurance Policy?
Buyers, Sellers, Import/Export merchants, Buying Agents, Contractors and Banks etc.
Marine Cargo Policies cover the interest in the cargo and also extend to cover the
interests of any third party who has acquired interest upon transfer of ownership,
as determined by the Terms of Sale.
How Marine Cargo Insurance helps?
Cargo can be damaged on exposure to a wide variety of risks, including an accident
of the vehicle carrying the cargo, damage due to jolts, jerks etc. Decide whether
you want to take a Basic Cover or a wider cover. Read and understand the terms and
conditions of the policy. Check whether there are any ‘Deductibles’.
What is generally excluded in a Marine Cargo Insurance Policy?
Loss or damage due to Inherent Vice , Delay, Insufficiency of packing, loss or damage
due to financial default or insolvency of the ship owner etc.
What are the other types of property insurance available?
Some of the other property insurances available are engineering insurance policies
like the Electronic Equipment Insurance, Machinery Breakdown insurance etc.