Inbuilt cover means coverage which insurance cover which is attached to the main policy and does not need to purchase by paying extra premium. In this blog, we will talk about accidental damage inbuilt cover which comes included in the industrial all-risk insurance policy.
Industrial all risks policy not only cover the named perils listed under fire insurance but also extends its coverage to accidental damage which is not covered under fire insurance. The eligibility of all industrial policy over INR 50 crores is having overall sum insured of INR 50 cores and more in one or more than one location across India.
Accidental damage cover means falling of objects accidentally due to a covered peril as mentioned in the policy schedule and thereby damaging the assets or property.
Some of the exclusions of the accidental damage inbuilt cover are as mentioned below:
- Loss, damage or destruction to the bullion or unset precious stones, any ornaments or works of art, manuscripts, plans, drawings, obligations, securities or documents of any kind, stamps, coins or paper cash, cheques, books of accounts or other business books, computer systems record, explosives unless otherwise specifically stated in the schedule of the Policy.
- Loss, damage or destruction to the policyholder’s property premises caused by modification of temperature.
- Damage or loss by spoilage resulting from the retardation or interruption or cessation of any operation or process caused by operation of any of the perils covered in the schedule of the policy.
- Loss or damage to ropes, chains, belts, rubber tyres, moulds, blades, industrial dies, cutters, knives or exchangeable tools, impression or engraved cylinders or rolls; objects made of glass, porcelain, ceramics, all operating media (e.g. lubricating oil, fuel, catalyst, refrigerant) felts, endless conveyor belts or wires; sieves, fabrics, heat resisting and anticorrosive lining and parts of similar nature, packing material, parts not made of metal (except insulating material) and non-metallic lining or coating of metal parts, unless caused by fire, lightning, strike, riot, malicious intent loss or damage, cyclone, storm, flood or inundation.
- Damage or loss due to breakdown, electronic, electrical and/or mechanical derangement.
- Loss or damage due to insects, termites, moths, vermin, inherent vice, flaws, fumes,
- latent defect, fluctuations in climate or atmospheric conditions, the action of light.
- Damage or loss due to collapse, settlement or bedding down, ground heave or cracking of structures or the weakening or removal of support to any insured property.
It is important to go through the policy inclusions and exclusions listen in the terms and conditions of the policy schedule in detail. This practice will ensure you are aware of the policy’s coverage and get your claim settled on a timely basis.
