In insurance, "peril" refers to the specific event or cause of loss that is covered by an insurance policy. It is one of the key concepts in insurance and is used to define the scope of coverage provided by the policy.
The insurance companies in India cover the perils under the Standard Fire and Special Perils Policy. The policy covers the destruction of or damage to the property described in the provided schedule due to any of the perils covered under this policy. However, it is important that the mentioned timetable, or any subsequent duration for which the Insured has made payment and the company has approved the premium necessary for policy renewal.
This pertains to perils covered by the insurance policy, including:
Fire Coverage: Your property is covered against fire damage, but not if it's damaged due to its own heating, drying, or fermentation, or if it's ordered to be burned by a public authority.
Lightning Coverage: Lightning damage is covered.
1. Explosion/Implosion Coverage: Explosions and implosions are covered, except when they happen in certain types of machinery or are caused by centrifugal forces.
2. Aircraft Damage Coverage: Damage caused by aircraft, like planes and objects dropped from them, is covered, but not if it's due to pressure waves.
3. Riot, Strike, and Malicious Damage Coverage: Damage caused by riots, strikes, or malicious actions is covered, but not if it results from work stoppages, government actions, unlawful occupation, or burglary.
4. Terrorism Damage Exclusion: Any damage caused by acts of terrorism is not covered, even if there are other contributing factors. Terrorism here means violent acts committed for political, religious, or ideological reasons to create fear.
In case the insurance company claims that something isn't covered, it's your responsibility to prove otherwise. If any part of this policy is found invalid, the rest still applies.
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5. Protection from Natural Disasters
If your property is damaged by a storm, cyclone, typhoon, hurricane, tornado, flood, or inundation, the insurer will cover the losses. However, if the damage is caused by an earthquake, volcanic eruption, or other natural disasters, it is not covered unless you have additional earthquake coverage.
6. Coverage for Impact Damage
The insurer will pay for any physical damage caused to your property by a vehicle or an animal that doesn't belong to you or your employees while they are working.
7. Subsidence and Landslide Protection
If your property is damaged due to the sinking of the ground it's built on or a landslide/rockslide, you have a cover for it. But, regular settling of new structures, ground movement, coastal/river erosion, design flaws, demolition, construction, and certain repairs are not covered.
8. Water Tank, Apparatus, and Pipe Damage
Damage caused by the bursting or overflowing of water tanks, apparatus, or pipes is covered. However, they won't cover damage due to repairs or changes to the building, modifications to the water systems, or known construction issues.
9. Missile Testing Operations
Loss or damage resulting from missile testing operations is covered.
10. Leakage from Automatic Sprinkler Systems
Damage caused by leaks from automatic sprinkler systems is covered. Repairs, changes to the sprinkler system, or known construction issues are not covered.
11. Protection from Bush Fires
The insurer generally covers damage from bush fires, but not from forest fires.
Please note that the amount the insurance company pays for each of these items will not exceed the limit specified in your insurance policy or the total coverage amount. Any changes to these limits must be agreed upon and signed by the insurance company.
Here are the key exclusions in the insurance policy:
· The policy doesn't cover the first 5% of each claim for "Act of God perils" (e.g., lightning, subsidence, landslides), or the first Rs. 10,000 for other covered losses, for each separate event.
· Loss or damage from war, foreign enemy actions, civil unrest, or military uprisings is not covered.
· Damage caused by nuclear radiation, nuclear waste, or hazardous properties of nuclear materials is not covered.
· Damage due to pollution or contamination is not covered unless it's caused by a peril already covered by the policy.
· Certain valuable items like bullion, precious stones, and important documents aren't covered unless specifically mentioned in the policy.
· Damage to goods in cold storage due to temperature changes is not covered.
· Damage to electrical equipment due to electrical issues (e.g., short circuits) is excluded, but only for the affected equipment.
· The insurance won't pay for architect or engineer fees and debris removal expenses beyond 3% and 1% of the claim amount, respectively.
· It doesn't cover loss of earnings, delays, or indirect losses.
· Spoilage of goods due to interruptions caused by covered perils is not covered.
· Theft following a covered event is excluded unless you have Riot, Strike, Malicious, and Terrorism Damage cover.
Volcanic Eruption or Other Natural Convulsions
Loss or damage to insured property if removed to a different location, except for machinery and equipment temporarily moved for repairs, cleaning, renovation, or similar purposes for up to 60 days.
Frequently Asked Questions About Perils (FAQs)
1. What perils are covered under the Standard Fire and Special Perils Policy in India?
The Standard Fire And Special Perils Policy in India covers a range of perils, including fire, lightning, explosion/implosion, aircraft damage, riot, strike, and malicious damage. It also provides protection against natural disasters like storms, floods, and cyclones, as well as damage from subsidence, landslides, water tank, apparatus, and pipe damage, missile testing operations, leakage from automatic sprinkler systems, and bushfires.
2. Are acts of terrorism covered by the policy?
No, acts of terrorism are not covered by the policy. Terrorism damage is excluded, even if there are other contributing factors. Terrorism, in this context, refers to violent acts committed for political, religious, or ideological reasons to create fear.
3. How do I prove that a claim should be covered if the insurance company denies it?
If the insurance company denies a claim, it is your responsibility to provide evidence supporting your claim. It's important to document the circumstances, gather any relevant information or witnesses, and work with your insurance provider to establish the validity of your claim.
4. Can I get coverage for volcanic eruptions or other natural convulsions?
Volcanic eruptions and other natural convulsions are not covered under the policy unless you have additional coverage specifically for such events.
5. Is there coverage for property moved to a different location?
Generally, property moved to a different location is not covered, except for machinery and equipment temporarily moved for repairs, cleaning, renovation, or similar purposes for a period not exceeding 60 days.
Please consult your insurance policy documents for specific terms, conditions, and coverage details, as policies may vary. Speak to BimaKavach's experts for best assistance.