Insurance Plans India 136 views August 7, 2021

Bharat Laghu Udyam Suraksha policy provides financial protection against losses/damages to business property. Under the policy, you’ll get financial protection in case of unexpected events such as physical loss, damage or destruction of buildings and structures, plant & machinery, stock, etc. Read this page and know more about the Bharat Laghu Udyam Suraksha coverage

Types of Bharat Laghu Udyam Suraksha Covers

Under the policy, you’ll get two types of covers:

Standard Cover: This provides financial protection against losses/damages caused to the building and structures, plant and machinery, stock and other assets.

In-built Cover: If the insurer agrees to pay under the standard cover, they will also pay for the following loss or damage and expenses:

  1. Additions, alterations or extensions up to 15% of the sum insured for that item. (excluding stocks)
  2. Temporary removal of stocks for fabrication, processing or finishing up to 10% of the value
  3. Provide up to INR 50,000 during the policy period for documents such as deeds, manuscripts, business books, plans, drawings, securities, etc.
  4. Provides up to INR 5 Lakh for computer programs, information and data
  5. Cover up to INR 15,00 for personal effects of employees, directors and visitors per person. The cover is available for a maximum of 20 persons
  6. Start-up expenses cover up to INR 5 Lakh
  7. Covers professional fees of architects, surveyors and consulting engineers up to 5 % of the claim amount
  8. Costs for removal of debris covered up to 2% of the claim amount
  9. Costs compelled by municipal regulations for the reconstruction of the property

Note: A provision of ‘Excess’ applies to each claim under the policy. So, you need to bear INR 10,000 or 5% of the claim amount, and the insurer shall pay the remaining.

Bharat Laghu Udyam Suraksha Plan Add-on Covers

You can purchase the following add-on by paying an additional premium.

  1. Floater Cover: Provides cover for stocks at multiple locations under one sum insured
  2. Declaration Policy for Stocks: Provides cover for frequent fluctuations in stock/stock values on a declaration basis.

List of Perils Covered Under Bharat Laghu Udyam Suraksha

Bharat Laghu Udyam Suraksha policy will cover physical loss, damage or destruction caused to the insured property by the following:

  1. Fire
  2. Explosion or Implosion
  3. Lightning
  4. Earthquake, volcanic eruption, or other like convulsions of nature
  5. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Tsunami, Flood and Inundation
  6. Subsidence of the land on which your homebuilding stands
  7. Landslide
  8. Rockslide
  9. Bush Fire, Forest fire, Jungle fire
  10. Impact damage of any kind
  11. Missile testing operations
  12. Riot, Strikes, Malicious Damages
  13. Acts of terrorism
  14. Bursting or overflowing of water tanks, apparatus and pipes
  15. Leakage from automatic sprinkler installations
  16. Collisions are caused by any external physical object like the vehicle, falling trees, aircraft, wall, etc.
  17. Theft caused by any of the above-insured events within seven days of its occurrence

Who Can Purchase Bharat Laghu Udyam Suraksha Plan?

You can buy the Bharat Laghu Udyam Suraksha Plan for any property of your business only if you are any of the following:

  1. Owner
  2. Tenant
  3. Lessee
  4. Purchaser
  5. Trustee

You can buy the policy for any commercial enterprise if the value of all insurable assets (whether insured or not) is more than INR 5 Crore but not more than INR 50 Crore at the date of the policy. If the value of your insurable assets is more than INR 50 Crore at the policy commencement, you can buy the policy designed for larger enterprises by paying the applicable premium for the same.

Note: If the value of insurable assets either exceeds INR 50 Crore or reduces below INR 5 Crore during the policy period, an applicable policy will replace the Bharat Laghu Udyam on its expiry.

Exclusion from Bharat Laghu Udyam Suraksha Plan

The insurer shall not cover the following losses/damages:

  1. Losses/damages caused by the burning of the insured property following the order of any Public Authority
  2. Normal cracking, settlement or bedding down of new structures
  3. Settlement or movement of made up ground
  4. Coastal or river erosion
  5. Defective design or workmanship or use of defective materials
  6. Demolition, construction, structural alterations or repair of any property
  7. Groundworks or excavations
  8. Losses/damages caused by pressure waves of aircraft or other aerial or space devices traveling at sonic or supersonic speeds.
  9. Temporary or permanent dispossession, confiscation, commandeering, requisition or destruction by order of the government or any lawful authority
  10. Temporary or permanent dispossession of your home by unlawful occupation by any person
  11. Repairs or alterations in your home or the building
  12. Repairs, removal or extension of any sprinkler installation
  13. Defects in the construction
  14. Loss of any article or thing outside your home
  15. Loss of any article or thing attached from the outside of the outer walls or the roof of your home, unless it is securely mounted.
  16. Losses/damages caused by your deliberate, willful or intentional act
  17. War, invasion or war-like operations
  18. Ionizing radiation
  19. Pollution or contamination
  20. Property is missing or if it has been mislaid
  21. Property is missing or has been mislaid
  22. Consequential or indirect loss or damage to the property
  23. Loss or damage to bullion or unset precious stones, manuscripts, vehicles and explosive substances
  24. Addition, extension or alteration to your building of more than 10% of its carpet area.
  25. Costs, expenses or fees for claim preparation
  26. Loss, damage or destruction to any electrical/electronic machine, apparatus, fixture, or fitting by over-running, excessive pressure
  27. Short-circuiting, arcing, self-heating or leakage of electricity from whatever cause (lightning included). This exclusion applies to the particular machine which is lost, damaged or destroyed.

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