TheOrientalInsuranceCompanyLimited

StandardFireandSpecialPerilsInsurancePolicy
Historicallyfirehasbeenamajorcauseoflossestoproperty.Orientalsfireinsuranceseeksto
provideprotectionagainstsuchlosses.
Knowmoreaboutourvariousfireproducts

StandardFireAndSpecialPerilsPolicy

ConsequentialLoss(Fire)InsurancePolicy/BusinessInterruption(Fire)Insurance

IndustrialAllRisk

MegaRiskPolicy

StandAloneTerrorismCover

StandardFireandSpecialPerilsPolicy
Thisisapackageinsurancewhichcoversthefollowingsetofperils:
PerilsCovered:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)

Fire
Lightning
Explosion/Implosion
Aircraftdamage
Riot,Strike,Maliciousdamage(RSMDPerils)
Storm,Tempest,Flood,Inundation,Hurricane,Cyclone,TyphoonandTornado.(STFI)
ImpactbyanyRail/Roadvehicleoranimalbelongingtothirdparties
Subsidence/Landslideincludingrockslide.
Burstingand/oroverflowingofwatertanks,apparatus.
LeakageformAutomaticSprinklerInstallation.
MissileTestingOperation.
Pollutionorcontaminationresultingfromanyoftheaboveperils
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TheOrientalInsuranceCompanyLimited
m) Anyinsuredperilresultingfrompollutionandcontamination.
n) BushFire

AdditionalInBuiltCovers:
Architects,SurveyorsandConsultingEngineers'Feesupto3%oftheclaimamount.
b) Expensesincurredforremovalofdebristoclearthesiteupto1%oftheclaimamount.
c) Machinery and equipment temporarily removed for repairs, cleaning, renovation or
othersimilarpurposesforaperiodof60days
a)

Note:
STFI and RSMD perils can be deleted at the inception of the policy for which suitable
reductioninpremiumrateisallowed.
b) FirePolicyisanannualpolicy
c) LongTermpolicy(foraminimumperiodofthreeyears)isalsoavailablefor"dwellings"
onlywithsuitablediscountsinpremium.
d) Cover for STFI and RSMD perils can also be given during currency (where they are
deletedatinceptionbychoice)inspecialcircumstances.
a)

SignificantExclusions:
a. Losses/Expensesnotcovered:
i.
5% of each and every claim subject to minimum of Rs. 10,000 resulting from
Lightning,STFIandSubsidenceandLandslideincludingRockslide(AOGPerils)
ii.
Rs.10,000inrespectofallotherperils.
iii.
Expenses incurred on Architects, Surveyors' Consultant Engineers fees and
DebrisRemovalinexcessof3%and1%ofclaimamountrespectively.
iv.
Lossofearnings,lossbydelay,lossofmarketorotherconsequentialorindirect
lossordamageofanykind.
v.
Ifthebuildinginsuredorcontainingtheinsuredpropertybecomesunoccupied
andsoremainsforaperiodofmorethan30days.
vi.
Loss or damage caused to insured property by its own fermentation, natural
heatingorspontaneouscombustion.
vii.
Loss or damage caused to insured property by its undergoing any heating or
dryingprocess.
b. Perilsnotcovered:
i.
Warandalliedperils
ii.
Nuclearandalliedperils
iii.
PollutionorContamination
iv.
*Earthquake,Volcaniceruptionorotherconvulsionsofnature.
v.
Aircraftdamagearisingoutofpressurewaves
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TheOrientalInsuranceCompanyLimited
vi.
vii.

viii.
ix.
x.

Lossbytheftduringoraftertheoccurrenceofanyinsuredperil
Riot,StrikeorMaliciousDamagelossesarisingoutof:
a. totalorpartialcessationofwork
b. Permanent or temporary dispossession resulting from order of the
Government.
c. Permanent or temporary dispossession resulting from the unlawful
occupationbyanyperson.
d. Theft,larcenyoromissionbyanyperson,inamaliciousact.
Costalorrivererosion
*ForestFire
* Loss, or damage by spoilage resulting from the retardation of any process
causedbyoperationofanyinsuredperils

c. Propertiesnotcovered:
i.
Items like bullion or unset precious stones, any curios or works of art for an
amount exceeding Rs.10000/, manuscripts, plans, drawings, securities,
obligationsordocumentsofanykind,stamps,coinsorpapermoney,cheques,
books of accounts or other business books, computer systems records,
explosivesmanuscriptsetc.unlessspecificallydeclared.
ii.
*Coldstoragestocksduetochangeoftemperature.
iii.
Loss / damage/ destruction of any electrical and/or electronic machine,
apparatus,fixtureorfittingarisingfromoverrunning,excessivepressure,short
circuiting, arcing, self heating or leakage of electricity, from whatever cause
(includinglightning).
iv.
* Loss / damage / destruction of Boilers, Economisers or other Vessels,
machinery or apparatus in which steam is generated, by its own explosion/
implosion.
v.
*CausedbyCentrifugalforce(theoutwardforceonabodymovinginacurved
patharoundanotherbody)
Note:
a)

Some of the above exclusions (marked *) can be covered at an additional premium.

Termsandconditionsapply.

Addoncovers
Inadditiontotheperils/expensescovered,theproposercanopttoseekcoverinrespectofthe
followingperils/expensesatinceptionorduringcurrencyofthepolicyonpaymentofadditional
premium.

TheOrientalInsuranceCompanyLimited
Perils:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)

Loss/damage/destructionofthepropertycausedby
DeteriorationofStocksinColdStoragepremisesduetopowerfailurefollowingdamage
duetoaninsuredperil
ForestFire
Impact Damage due to Insured's own Vehicles, Fork lifts and the like and articles
droppedtherefrom
SpontaneousCombustion
Omissiontoinsureadditions,alterationsorextensions
Earthquake(FireandShock).
Spoilagematerialdamagecover.
Leakageandcontaminationcover.
Temporaryremovalofstocks.
Terrorism

Expenses:
a)

Architects,SurveyorsandConsultingEngineer'sFees(inexcessof3%claimamount)

b) DebrisRemoval(inexcessof1%ofclaimamount)

Lossofrent.
d) Insuranceofadditionalexpensesofrentforalternativeaccommodation.
e) StartupExpenses.
c)

SumInsured:
a)
b)
c)

d)
e)

Propertycanbeinsuredondepreciatedcost(marketvalue)orreplacementcostbasis.
In order to get better protection, insurance on reinstatement (replacement) basis is
recommended.Thesuminsuredselectedshouldbeadequateforreinstatement.

Incasethevalueofapropertymayincreaseduetofactorslikeincreaseinprimecost,
Exchange rate etc. during the currency of the policy, the corresponding sum insured
maybeincreasedupto25%maximumbyoptingfortheEscalationExtension.
Similarly, any reduction in sum insured during currency may be effected for which
refundofpremiumwillbeallowedonshortperiodbasis.
Followingguidelines,thoughnotexhaustive,areprovidedforarrivingatthesumstobe
insuredforvariousproperties.

Caution:
Ifthedeclaredsuminsuredisfoundtobelessthanthevalueofthepropertyinsured,thenthe
claimamountisproportionatelyreduced.Forexample:

TheOrientalInsuranceCompanyLimited
IfhevalueofthepropertyisRs.50Lacs,buttheSumInsuredisdeclaredasRs.40Lacsandafire
lossofRs.10Lacshastakenplace,theclaimamountpayablewillbeproportionatelyreduced:
10x40/50=Rs.8.00Lacs.
Property
1.Building
(a)Completed

BasisofInsurance

SumInsured

DepreciatedValueBasis

Estimated cost of Reinstatement

(material + Labour) of a similar
propertyasonthedateofproposal,at
theinsuredsite

+(plus)
suitableescalationforthepolicyperiod
(minus)
depreciationforage

Reinstatement
Basis

Value

Estimated cost of Reinstatement

(material + Labour) of a similar
propertyasonthedateofproposal,at
theinsuredsite

+(plus)

suitableescalationforthepolicyperiod

+(plus)
suitable escalation for reinstatement
period which may extend beyond the
policyperiod
Thus, this policy will pay, in the event
ofloss/damage,withoutanydeduction
fordepreciation.
Subject to Sum Insured being found
adequateonthedateofcompletionof
reinstatement
Value Estimated Total completed value (Material +
Labour)

(b) In course of Reinstatement

Construction
Basis
2.Plant&Machinery

TheOrientalInsuranceCompanyLimited
Property
(a)BoughtNew

BasisofInsurance
MarketValue

(b)
Bought MarketValue
Secondhand

SumInsured
Estimated cost of replacement of a
similar machine of the same kind and
capacityasonthedateofproposal,at
theinsuredsite
+(plus)
suitableescalationforthepolicyperiod
(minus)
depreciation for age and usage for
number of years from the date of
manufacturing (and not from the year
inwhichitwasbought)

Estimated cost of replacement of a

similar machine of the same kind and
capacityasonthedateofproposal,at
theinsuredsite

+(plus)
suitableescalationforthepolicyperiod
(minus)
depreciation for age and usage for
number of years from the date of
manufacturing (and not from the year
inwhichitwasbought)
CAUTION:
Such machines are not insured on
reinstatement value basis unless
satisfactory
inspection
report
confirming efficient working is
obtained.
Value
Estimated landed cost of a similar
machineofthesamekindandcapacity
as on the date of proposal,, at the
insuredsite
+(plus)
suitableescalationforthepolicyperiod
+(plus)
suitable escalation for reinstatement
period which may extend beyond the
policyperiod
Thus, this policy will pay, in the event

Reinstatement
Basis

TheOrientalInsuranceCompanyLimited
Property

BasisofInsurance

SumInsured
ofloss/damage,withoutanydeduction
fordepreciation.
Subject to Sum Insured being found
adequateonthedateofcompletionof
reinstatement.
CAUTION:
Normally not considered for second
hand bought machinery, unless
satisfactory productivity report is
available.
P.S.Generally,thelandedcostofanimportedorindigenousmachinerywillincludeitsprime
cost, Customs Duty/Excise Duty , CV Duty, , loading and unloading charges, freight,
insurance,incidentalexpensesandcostoferectionatsite.
(c)
Obsolete AgreedValue
Value has to be ascertained by an
M/c.
expertvaluer.
The value so ascertained will be the
agreed value between insurer and
proposer and loss/ damage will be
assessedonthisbasis.
Such machines cannot be insured on
reinstatementvaluebasis
3.Stocks

(a)RawMaterial MarketValue
Landedcostatthetimeofproposal,at
theinsuredsite
+/(plus/minus)
for expected variation in prices during
thepolicyperiod
(b)
Finished MarketValue
Landedcostatthetimeofproposal,at
Goods
theinsuredsite
OR
Raw material cost plus cost of
manufacturing
+/(plus/minus)
for expected variation in prices during
thepolicyperiod
(c) Stock in MarketValue
LandedcostofRawmaterialsattheat
process
theinsuredsiteattimeofproposalplus
directandindirectchargesincurredup
tothestageofprocessing,
+/(plus/minus)
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TheOrientalInsuranceCompanyLimited
Property

BasisofInsurance

SumInsured
for expected variation in prices during
thepolicyperiod
P.S. : Landed cost means prime cost plus all duties plus freight, insurance and incidental
charges.
(d)Stockintrade
Manufacturer
MarketValue
Landed cost at insured site of Raw
materialsatthetimeofproposal
+(plus)
plusmanufacturingcostsi.e,directand
indirect charges incurred up to the
stageofprocessing
+/(plus/minus)
for expected variation in prices during
thepolicyperiod
Wholesaler
MarketValue
Landedcostatwhichthegoodscanbe
purchased from the Manufacturer, as
onthedateofproposal
+/(plus/minus)
for expected variation in prices during
thepolicyperiod
Retailer
MarketValue
Landedcostatwhichthegoodscanbe
purchased from the Wholesaler, as on
thedateofproposal
+/(plus/minus)
for expected variation in prices during
thepolicyperiod
4.Furniture,Fixture&Fittings

MarketValue
Estimated landed cost of a similar
property of the same kind, as on the
dateofproposal
+(plus)
suitableescalationforthepolicyperiod
(minus)
depreciationforageandusage

Reinstatement
Value
Estimated landed cost of a similar
Basis
property,asonthedateofproposal,at
theinsuredsite
+(plus)
suitableescalationforthepolicyperiod
+(plus)
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TheOrientalInsuranceCompanyLimited
Property

BasisofInsurance

SumInsured
suitable escalation for reinstatement
period which may extend beyond the
policyperiod
5.Itemstobecoveredspecificallyondeclaration

AgreedValueBasis
Valueascertifiedbyanexpertvaluer.
LocationofRisk:
i.
ii.
iii.
iv.

The proposer shall describe all locations where the properties are built or installed or
storedorkeptattheinception
Anychangeoflocationofriskmaybecovered,onintimationofsuchchange.
Changeofownershipintheinsuredpropertyshallbeintimatedsothatthenewowner
maybecoveredbemeansofsuitableendorsement.
Any material change in the location of risk, trade or manufacturing activities shall be
intimated to the insurer so that the changes are endorsed on the policy to offer
continuouscover.

Howtoclaim
Intheunfortunateeventofaclaimplease:
i.
ii.
iii.

iv.
v.
vi.

Immediatelyintimatesuchloss/damagetothenearestofficewithacopytothepolicy
issuingoffice,sothataCompetentSurveyormaybedeputedtoforlossassessment.
Takeallstepstominimisetheloss,asifnoinsurancehasbeentaken.
giveanaccountofallpropertiesdamagedordestroyedwithestimatedamountshaving
regardtotheirvaluesasonthetimeanddateandplaceofloss,notincludingprofitof
anykind
cooperate with surveyors by providing all the necessary documents for assessment of
lossandestablishingliability.
cooperatewiththeinsurer.
informparticularsofallotherinsurancesexistingonthepropertyatthetimeofloss.

Documentsrequiredbyinsurerforprocessingtheclaim:
ClaimduetoFireand/orExplosion
a) Copy of Claim intimation given to Company together with xerox of policy & premium
receipt
b) DulyfilledClaimForm
c) PolicePanchnama/FirstInformationReport/FinalPoliceReport(ForensicDeptt.)
d) FireBrigadeReport
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TheOrientalInsuranceCompanyLimited
e) PhotographsofDamagedPropertyshowingextentofdamage&/orvideofilmofloss
Tosubstantiatequantumofloss,valueofdamagedinsuredpropertyjustpriortoloss,&valueof
salvage. please make available to surveyors/investigators fixed Asset Register, original Bills/
Invoice,Repairs/ReplacementBills/InvoicesandstockRegister
Formoredetailspleasecontactyournearestoffice
ClaimduetoFlood,Storm,Cyclone,Earthquake,Subsidence/Landslide
a) Copy of Claim intimation given to Company together with xerox of policy & premium
receipt
b) DulyfilledClaimForm
c) Tosubstantiatequantumofloss,valueofdamagedinsuredpropertyjustpriortoloss,&
valueofsalvage.pleasemakeavailabletosurveyors/investigatorsfixedAssetRegister,
originalBills/Invoice,Repairs/ReplacementBills/InvoicesandstockRegister
d) Newspaper
cutting
wherein
the
incidence
of
occurrence
of
flood/storm/cyclone/earthquake/landslidehasbeenreported
e) MeteorologicalReport
Formoredetailspleasecontactyournearestoffice
ClaimduetoRiot,Strike,MaliciousDamageandTerrorism(RSMDT)
a) Copy of Claim intimation given to Company together with xerox of policy & premium
receipt
b) DulyfilledClaimForm
c) PolicePanchnama/FirstInformationReport/FinalInvestigationReport
d) FireBrigadeReport
e) Tosubstantiatequantumofloss,valueofdamagedinsuredpropertyjustpriortoloss,&
valueofsalvage.pleasemakeavailabletosurveyors/investigatorsfixedAssetRegister,
originalBills/Invoice,Repairs/ReplacementBills/InvoicesandstockRegister
f) Newspapercuttingwhereintheincidenceofriotshasbeenreported
g) PhotographsofDamagedPropertyshowingextentofdamage&/orvideofilmofloss
Formoredetailspleasecontactyournearestoffice

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