The Bharat Laghu Udyam Suraksha Office Package Policy is a plan offered for people who are looking to get some security to ensure that any threats to their small-sized enterprise do not translate to financial doom for them. If you are considering buying such a policy, or have already purchased one, here are some terms you may come across that you may need to be aware of.*
Commonly an abbreviation for Micro, Small, and Medium Enterprises, MSME could also be used to refer to the Ministry of Micro, Small, and Medium Enterprises. This is used to define the size or type of business, based on which the ideal coverage can be chosen for the same.
In the context of this sort of general insurance, coverage refers to the extent and terms of protection or financial assistance provided by an insurance policy to the policyholder in the event of an insured event occurring during the specified Policy Period. When an insured event takes place and is reported in accordance with the policy's requirements, the insurance company may make payments as outlined in the policy terms. However, these payments are limited and will only be made up to the specified Sum Insured or Limit of Indemnity, which are detailed in the policy's Schedule. The coverage may be further subdivided into different "Covers" or sub-limits, each with its own specific Sum Insured or Limit of Indemnity, as specified in the policy, depending on the nature of the insured risks or assets.
Building and Contents Cover
Under this MSME insurance policy, this cover offers protection for both the physical structure (building) and the personal belongings (contents) within the insured property, as per the guidelines of the policy. This coverage typically safeguards against various risks such as damage to the building and loss or damage to the contents, excluding valuable items as defined in the policy.
Under the Burglary and Robbery Cover of this general insurance
policy, the term Money Loss refers to the coverage for the loss of money in the following circumstances:
- Money contained in a Safe or Strong Room during unoccupied hours within the insured premises, if the loss occurs due to actual or attempted Burglary during the Policy Period.
- Robbery during business hours, specifically money taken from the cashier's till and/or counter within the insured premises.
- Loss of or Damage to Contents
Another aspect of the Burglary and Robbery Cover of the Bharat Laghu Udyam Suraksha policy, this term refers to the loss of or damage to the contents within the insured premises, excluding money, caused by actual or attempted acts of burglary, robbery, or theft that occur during the policy period.
Damage to Insured Premises
The Burglary and Robbery cover also extends to the damage suffered by the insured premises itself, which includes the reasonable costs incurred by the insured for changing damaged locks at the entry and/or exit points to the insured premises and at internal entry and/or exit points. This damage is caused by actual or attempted burglary during the policy period.
Breakdown of Office Equipment
This coverage of the Office Package policy offers protection to the policyholder against the financial costs associated with repairing or replacing office equipment in the event of unforeseen and sudden physical damage. This coverage is contingent on the loss being unanticipated and abrupt, except when the cause is explicitly excluded by the policy.
In the context of insurance, the term “baggage” pertains to personal baggage accompanying the insured individual or the insured's employee while they are travelling anywhere in the world for business purposes. The coverage extends to this baggage in case of accidental loss, destruction, or damage when the person insured is travelling with the same, especially for business purposes. It indemnifies the insured party and/or their employee for any financial losses incurred due to the accidental loss, destruction, or damage to their personal baggage for which they are responsible during their business-related travels.
In the case of most insurance policies, including health, personal accident, or fire insurance, a claim refers to when the policyholder seeks the benefits offered by the policy in case of the occurrence of an event that is covered by their policy. You will be required to have the relevant documents to be able to make a claim and may be required to do so within a certain time frame after the occurrence of the event. Claims are subject to terms and conditions set forth under the MSME insurance policy.
Once a policyholder purchases a policy to cover their MSME, they have a period of 15 days that is referred to as the “free look period”. Within this period, if the policyholder is not satisfied with the terms and conditions of the policy, they may choose to surrender their policy. This is applicable only in the case of new policies.
These are some of the terms that MSME insurance policyholders ought to keep in mind. To get a better idea of what the policy has to offer, you may also go through the policy document or consult your insurance provider.
*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.