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Bharat Sookshma Udyam Suraksha Commercial Policy
Feb 11, 2024

All You Need To Know About The Bharat Sookshma Udyam Suraksha Commercial Package Policy Covers Pedal Cycle

When it comes to micro, small, and medium enterprises (MSMEs), financial stability is one of the utmost priorities. With a continuous cycle of profit and loss for such businesses, it is important for them to safeguard all the components essential for the functioning of the business. This goes beyond the manpower keeping a business running smoothly. The Bharat Sookshma Udyam Suraksha policy offers financial security to MSMEs. A part of the coverage pertains to the pedal cycle. Let’s understand what this coverage entails and how it can benefit you and your business.

A Short Overview

The Bharat Sookshma Udyam Suraksha Policy, launched by the Government of India, is designed to provide MSMEs with comprehensive insurance coverage. The primary focus is often on machinery and equipment among other things, since they are essential for the functioning of a business.

Pedal Cycle Cover

For MSMEs providing outdoor/door-to-door services, most of the activities may be carried out on foot. But as requirements can change with time, such services may have to adapt and be more prompt, thus creating a good impression of the enterprise. Hotels or local stores are some examples that offer these services. Nowadays, these services are offered with the help of motorised and non-motorised vehicles. Pedal cycles are a cheap and popular alternative due to their easy usage and low maintenance cost. But even pedal cycles are prone to damage. Any damage that can potentially affect the functionality of a pedal cycle can also impact the business as well. If your business is insured by the Bharat Sookshma Udyam Suraksha commercial package policy, one of its inclusions you may benefit from, is the pedal cycle coverage. Here is what it covers in terms of your pedal cycle:
  1. Damage or loss caused due to fire*#
  2. Damage or loss caused due to natural calamities such as earthquake, flood, cyclone, storm, or lightning*#
  3. Damage or loss caused due to manmade calamities such as external explosion, riot, strike, malicious act andterrorist activities*#
  4. Damage or loss caused due to burglary and/or housebreaking*#
  5. Damage or loss caused in accident*#

How Does The Coverage Work?

The working of the pedal cycle coverage in this MSME insurance policy is quite simple and less complex to understand. For example, consider that your business uses 4 cycles for providing door-to-door services, and one of the cycles gets damaged in an accident. The damage affects the functioning of the cycle and leaves it inoperable unless repaired. If your business is not insured by this policy, you would be required to pay out of pocket for the repairs. The pedal cycle coverage will cover the cost of repair. If the cost of repair is less than the cost of a new cycle, the policy will cover the cost of repair, thus ensuring that the interruption to the business is minor. If the cycle suffers a total loss of functionality, the pedal cycle coverage will offer you compensation. Do remember that the compensation offered will be as per the sub-limit mentioned by the insurer in the policy document.*#

Exclusions Of The Pedal Cycle Coverage

The following are the exclusions of the pedal cycle coverage in the Bharat Sookshma Udyam Suraksha policy:
  1. There is a deductible in the policy for every claim that you file. Your share of deductible in this general insurance  policy is 5% of the sum insured. The minimum deductible amount is ₹250*#
  2. If the pedal cycle has been taken abroad and gets damaged in international waters, the damage will not be covered by the policy*#
  3. Pedal cycles are often used to carry certain goods. If the weight of the goods being carried is beyond the bearing capacity of the cycle and it damages the frame, the damage will not be covered by the policy*#
  4. If there are more people seated on the cycle beyond the bearing capacity of the cycle, causing it to get damaged, the damage is excluded by the policy*#
  5. If any part of the cycle gets damaged during theft/attempted theft, the repair of the part will not be covered*#
  6. If the cycle is used for activities such as racing, any damage caused during such an activity is excluded in this cover*#


The pedal cycle coverage under this general insurance policy can be quite beneficial if your enterprise has cycles to deliver services that are vital to your business. Do remember to discuss with your insurer about this coverage at the time of purchasing the policy. If you have any other policy requirements, discuss the same with the insurer.   *Standard T&C Apply #Visit the official website of IRDAI for further details 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.

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