What Events Are Insured Under Bharat Sookshma Udyam Suraksha Commercial Insurance Policy?

The Bharat Sookshma Udyam Suraksha commercial insurance policy is meant for business organisations falling under Micro, Small and Medium Enterprises (MSMEs). Specifically, the policy is meant for Micro-level organisations. The Bharat Sookshma Udyam Suraksha commercial insurance policy can cover the policyholder’s insured property relating to their business if the total value at risk across all insurable asset classes at a single location does not exceed ₹ 5 Crores at the beginning of the policy. If the value at risk exceeds ₹ 5 Crores during the policy period, it may be replaced by another applicable policy on its expiry. This general insurance policy provides coverage against various events to ensure financial protection for micro-level organisations. * Claims are subject to terms and conditions set forth under commercial insurance policy. Let’s explore the various events covered under the plan and gather additional information about it.

Insured Events under the Bharat Sookshma Udyam Suraksha Commercial Insurance Policy 

Along with each covered event, we have also listed the situations under some events which the insurer may exclude for that particular coverage. The events insured under Bharat Sookshma Udyam Suraksha commercial insurance are as follows: *

1. Fire, including due to its own fermentation, natural heating, or spontaneous combustion

Not covered if:

• The property is undergoing a heating or drying process
• The fire is due to the burning of insured property by the Public Authority’s order.

2. Explosion or implosions

Not covered if:

• It is caused to boilers, economisers or other vessels, machinery or apparatus in which steam is generated, or their contents, resulting from their own explosion or implosion.
• It is caused by centrifugal forces.

3. Lightning

4. Earthquakes, volcanic eruptions, or other convulsions of nature

5. Storm, cyclone, typhoon, tempest, hurricane, tornado, tsunami, floods, and inundation

6. Subsidence of the land on which your premises stand, landslides, rockslides

Not covered in the general insurance plan if it is caused by:

• Bedding down or settlement of new structures, or standard cracking
• The settlement or movement of made-up ground
• Coastal or river erosion
• Workmanship or design that is defective or has used defective materials
• Demolition, construction, structural alterations or repair of any property, groundworks, or excavation.

7. Bush fire, forest fire, jungle fire

8. Impact damage of any kind

This refers to damage caused by the impact of, or collision caused by any external physical object (e.g., vehicle, animal, falling trees, aircraft, wall, etc.) Not covered if it is caused by:

• Pressure waves as a result of aircraft or other aerial or space devices travelling at sonic or supersonic speed
• Vehicle or animal belonging to or owned by the insured or their employee while acting in the course of employment.

9. Missile testing operations

10. Riots, strikes, malicious damages

Not covered if it is caused by:

• Total or partial cessation of work or the retardation or interruption or cessation of any process/ operations/ or omissions of any kind
• Temporary/ permanent dispossession, confiscation, commandeering, requisition, destruction by government or any lawful authority’s order
• Temporary/ permanent dispossession by a person who had unlawfully occupied any building.

11. Acts of terrorism

The inclusions and exclusions of this coverage are as per the terrorism clause attached separately within the policy wordings.

12. Pipes, apparatus and water tanks bursting or overflowing

13. Leakage from automatic sprinkler installations

Not covered under this MSME insurance policy if it is caused by:

• Repairs or alterations in the building in which the business is located
• Repairing, removing, or extending any sprinkler installation
• Defects in the construction known to the insured/ policyholder.

14. Theft

It is covered if it occurs within 7 days from the date of occurrence of and is proximately caused by any of the insured events mentioned above. Not covered if theft is:

• Of any article or thing outside the premises
• Of any article or thing attached from the outside of the outer walls or the roof of the premises, unless securely mounted.

Each insured event mentioned in the list above is subject to the policy’s limitations, exclusions, and terms and conditions. Claims are subject to terms and conditions set forth under commercial insurance policy.

In-built Covers under the Bharat Sookshma Udyam Suraksha Commercial Insurance Policy

Along with coverages such as fire insurance coverage, explosion insurance coverage, and other events mentioned earlier, other in-built covers are also provided in the policy. These include - *

1. Additions, alterations or extensions for buildings and other contents
2. Physical loss or damage to movable property in multiple locations on floater basis
3. Temporary removal of stocks
4. Start-up expenses
5. Professional fees (architects, surveyors, consulting engineers)
6. Cost for removal of debris
7. Costs compelled by municipal regulations
8. Cover for specific contents (e.g., deeds, manuscripts and business books, computer programs, and so on)

Claims are subject to terms and conditions set forth under commercial insurance policy. All in-built covers are limited to the extent specified in the policy. They are also subject to terms and conditions mentioned for each cover in the policy wordings, along with the general set of terms and conditions.   * Standard T&C apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.