Burglary insurance is a major class of miscellaneous insurance. the policy covers contents against loss or damage by burglary and is available to commercial establishments, factories, god owns, shops etc.
EXCLUSIONS
A. This Policy does not cover the following unless specially mentioned in the Schedule and expressly insured by the Policy:-
1) The amount of the Excess specified in the Schedule ascertained after the application of all other terms and conditions of this Policy including any condition of average (under-insurance).
2) Gold or Silver articles, watches, any precious metals, articles made from any precious metals, jewellery, precious stones, medals, coins, stamp collections, coin collections, curios, sculptures, manuscripts, rare books or documents of any kind.
3) Loss or damage which is recoverable under Fire, Plate Glass, Neon Sign, Marine Cargo Insurance Policy or any other policy under which such coverage is has been obtained by the insured.
Loss or damage caused by wear and tear or gradual deterioration.
4) Loss or damage occasioned by loot, sack, spillage or pilferage.
5) Consequential loss or damage of any kind.
At the outset , it Is necessary to understand the meaning of certain terms:-
“Property Damage” means actual physical damage to the Insured Premises caused by
actual or attempted Housebreaking.
“Property” means assets, machinery, equipment, furniture, fixtures and fittings, electrical
installations and stock and stock-in-trade in the Insured’s premises described in the Schedule
to this Policy including items contained therein for which the Insured is accountable.
“Period of Insurance” means the period between the commencement date and the expiry
date shown in the Schedule.
“Proposal” means any signed proposal by filling up the questionnaires and declarations,
written statements and any information in addition thereto supplied to Company by Insured
or on Insured’s behalf.
“Insured Premises” means the place(s) declared for insurance and named in the Schedule
attached to the policy.
“Policy” means the Policy Booklet, the Schedule, the Proposal and any applicable
endorsements or memoranda. The policy contains the details of the extent of the cover
available to the Insured, what is excluded from the cover and the conditions, warranties on
which the Policy is issued.
“Sum Insured” means the Monetary Amounts shown against item/s insured.
“Burglary or Housebreaking” means theft following upon an actual forcible and violent
entry of or exit from the premises by the person or persons committing such theft.
“Robbery” means the theft of contents at the insured premises using unforeseen, aggressive
and violent means against the insured and / or their employees.
“Hold-up” means forcible removal by actual or threatened violence against the Insured or
Employee(s) of the Insured.
“Excess” means the amount stated in the Schedule, which shall be borne by the Insured in
respect of each and every Claim made under this Policy.
“Contents” means items declared for insurance and specified in the Schedule.
“Business” means the business of the Insured as stated in the Schedule.
“Claim” means a claim under an Operative Clause in respect of an insured event that has
taken place or is likely to take place.
“Employee” means any person with whom the Insured has entered into a contract of
service
SPECIAL CONDITIONS:
1. Reinstatement of Sum Insured:
Immediately upon the happening of any loss or damage as described in the Policy, the total Sum
Insured and the Sum Insured upon the various descriptions of property which have been lost or
damaged shall be reduced by the amount of loss or damage and such reduced sums insured shall
be the limit of the Company’s liability in respect of any further loss or damage occurring during
the current period of insurance, unless the Company consents, upon payment of additional
premium to reinstate the full Sum Insured.
2.Floater Clause:
In consideration of premium charged, the sum Insured in aggregate under the policy is available
for any one, more, or all locations as specified in the policy in respect of movable property. At
all times during currency of policy the insured should have a good internal audit and accounting
procedure under which the total amount of risk at any/ or every one of the locations can be
established at any particular time, if required.
3.Onus of Proof:
In any action, suit or other proceedings where Insurer alleges that by reason of the above
provisions any damage is not covered by this Insurance, the burden of proving that such damage
is covered shall be upon Insured.
GENERAL CONDITIONS
1.Basis of Sum Insured:
The Sum Insured under Policy would be fixed on current market prices for stocks. For other
items such as furniture, fixture, equipment’s, etc., it can be fixed either on Market Value (i.e. new
replacement cost less depreciation) or on Reinstatement Value basis.
2. Mid Term Increase in Sum Insured:
In the event of an increase in the Sum Insured being agreed to, the Company shall charge on
such increased sum an additional provisional premium on a basis proportionate to the unexpired
period of the policy.
3.Mid Term Reduction in Sum Insured:
In the event of a decrease in the Sum Insured being agreed to, the Company shall refund
premium on such reduction in Sum Insured. The premium refunded will be Premium collected
less premium chargeable for the expired period on Short period scale. Expired period herein is
period from policy inception date till date of decrease in sum insured endorsement. However, no
reduction in Sum Insured shall be allowed for Declaration policies during the currency of the
policy
4.Contribution:
If at the time of happening of any loss or damage covered by this Policy there shall be existing
any other insurance of any nature whatsoever covering the same, whether effected by the
Insured or not, then the Company shall not be liable to pay or contribute more than its rateable
proportion of any loss or damage.
5.Subrogation:
The Insured and any claimant under this Policy shall at the expense of the Company do or
concur in doing or permit to be done all such acts and things that may be necessary or
reasonably required by the Company for the purpose of enforcing any rights and remedies or
obtaining relief or indemnity from other parties to which the Company shall be or would
become entitled or subrogated upon the Company paying for or making good any loss or
damage under this Policy whether such acts and things shall be or become necessary or required
before or after the Insured’s indemnification by the Company.
6. Fraud:
If any claim under this Policy shall be in any respect fraudulent or if any fraudulent means or
device are used by the Insured or any one acting on the Insured’s behalf to obtain any benefit
under this policy, all benefits and rights under the Policy shall be forfeited.
7. Claim Settlement:
The company will settle the claim under this policy within 30 days from the date of receipt of
necessary documents required for assessing the claim. In the event that the company decides to
reject a claim made under this policy,
8.Claims Procedure:
On the happening of any loss or damage the Insured shall give immediate notice thereof to
the Company and shall within 15 days after the loss or damage, or such further time as the
Company may in writing allow in that behalf, deliver to the Company. The Insured shall also at all times at his own expense produce, procure and give to the
Company all such further particulars, plans, specification books, vouchers, invoices,
duplicates or copies thereof, documents, investigation reports (internal/external), proofs
and information with respect to the claim and the origin and cause of the loss and the
circumstances under which the loss or damage occurred, and any matter touching the
liability or the amount of the liability of the Company as may be reasonably required by
or on behalf of the Company together with a declaration on oath or in other legal form
of the truth of the claim and of any matters connected therewith.