Standard Fire and Special Perils Policy

Who Can Take This Policy

  • Owners of Building and the contents.
  • Shop Keepers – building and/or stock in trade, furniture, fixture, fittings.
  • Educational/ Research Institutions.
  • Hotels, Restaurant, Hospitals, Clinics etc.
  • Industrial and Manufacturing companies.
  • Warehouse – own or goods kept in trust/commission as bailees
    Bailees, Lessor, Lessee, Banks, Financial Institutions, Mortgagors, Mortgagees.
  • Traders in stocks

What does the Fire Policy cover:

This is a package insurance which covers the following set of perils:

  • Fire.
  • Lightning.
  • Explosion / Implosion.
  • Aircraft damage.
  • Riot, Strike, Malicious damage (RSMD Perils).
  • Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon and Tornado (STFI).
  • Impact by any Rail/ Road vehicle or animal belonging to third parties.
  • Subsidence / Landslide including rockslide.
  • Bursting and / or overflowing of water tanks, apparatus.
  • Leakage form Automatic Sprinkler Installation.
  • Missile Testing Operation.
  • Pollution or contamination resulting from any of the above perils.
  • Any insured peril resulting from pollution and contamination.
  • Bush Fire.

Additional In‐Built Covers:

  • Architects, Surveyors and Consulting Engineers’ Fees up to 3 % of the claim amount.
  • Expenses incurred for removal of debris to clear the site up to 1 % of the claim amount.
  • Machinery and equipment temporarily removed for repairs, cleaning, renovation or other similar purposes for a period of 60 days.

Period of Insurance:

  • Fire Policy is an annual policy with period of insurance being 12 months.
  • Long Term policy is available for Residential Dwelling at a discounted premium.

What the policy will not pay:

  • Expenses incurred on Architects, Surveyors’ Consultant Engineers fees and
    Debris Removal in excess of 3% and 1% of claim amount respectively.
  • Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind.
  • If the building insured or containing the insured property becomes unoccupied and so remains for a period of more than 30 days.
  • Loss or damage caused to insured property by its own fermentation, natural
    heating or spontaneous combustion.
  • Loss or damage caused to insured property by its undergoing any heating
  • War and allied perils
  • Nuclear and allied perils
  • Pollution or Contamination
  • Aircraft’ damage arising out of pressure waves
  • Loss by theft during or after the occurrence of any insured peril
  • Riot, Strike or Malicious Damage losses
  • Costal or river erosion
  • Forest Fire

Items not covered under Fire Policy:

  • Bullion or unset precious stones, any curios or works of art for an amount exceeding Rs.10000/‐, manuscripts, plans, drawings, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of accounts or other business books, computer systems records, explosives, manuscripts etc.
  • Cold storage stocks due to change of temperature. – add on cover is available.
  • Loss / damage/ destruction of any electrical and/or electronic machine, apparatus, fixture or fitting arising from over running, excessive pressure,  short circuiting, arcing, self heating or leakage of electricity, from whatever cause (including lightning).
  • Loss / damage / destruction of Boilers, Economisers or other Vessels,
    machinery or apparatus in which steam is generated, by its own explosion/

Add on covers on payment of additional premium:

  • Deterioration of Stocks in Cold Storage premises due to power failure following damage due to an insured peril. 
  • Forest Fire.
  • Impact Damage due to Insured’s own Vehicles, Fork lifts and the like.
  • Spontaneous Combustion.
  • Omission to insure additions, alterations or extensions.
  • Earthquake (Fire and Shock). – Built-in cover for sum insured up to Rs.50  Crores.
  • Spoilage material damage cover.
  • Leakage and contamination cover.
  • Temporary removal of stocks.
  • Terrorism.
  • Start up expenses.

How the sum insured should be arrived at:

  • Property can be insured on depreciated cost (market value) or replacement cost basis.
  • In order to get better protection, insurance on reinstatement (replacement) basis is recommended. The sum insured selected should be adequate for reinstatement. 
  • In case the value of a property may increase due to factors like increase in prime cost, Exchange rate etc. during the currency of the policy, the corresponding sum insured may be increased up to 25% maximum by opting for the ‘Escalation Extension’. 
  • Similarly, any reduction in sum insured during currency may be effected for which refund of premium will be allowed on short period basis.
  • Following guidelines, though not exhaustive, are provided for arriving at the sums to be insured for various properties.


  • If the declared sum insured is found to be less than the value of the property insured, then the claim amount is proportionately reduced. For example: Rs.10 lakhs and is declared as Rs.5 lakhs and a fire accident loss of Rs. 5 lakhs was reported; the claim payable will be Rs.2.50 lakhs (5 x 5/10 = 2.50)
  • Hence, fixing of sum insured should be done in an objective manner so as to ensure that the sum insured is adequate on all aspects

Claim Process

  • Immediately intimate loss / damage to the broker.
  • Broker will advise insurance company to depute an independent Surveyor for physical inspection of the damaged property and assess the quantum of financial loss.
  • Take all steps to minimise the loss, as if no insurance has been taken.
  • Submit an estimate of loss, item wise that was damaged by insured perils.
  • Give an account of all properties damaged or destroyed with estimated amounts. 
  • All the necessary documents in support of the claim should be furnished to the surveyor to enable the surveyor to complete the lost assessment.
  • Details of any other insurance in respect of the damaged property to be furnished.

Claim Documentation

  • Copy of Claim intimation.
  • Claim form duly complete in all respects and signed by the authorised signatory.
  • Police First Information Report where ever required – strike, riot, malicious damage etc.
  • Fire Brigade Report.
  • Photographs/ video of damaged property clearly showing extent of damage.
  • An extract of the asset register and purchase bill to be furnished to the surveyor to prove ownership of property.
  • In respect of Stocks – stock register should be shown to the surveyor.
  • Newspaper clipping / Meteorological report – applicable for loss/damage claims arising out of Flood, Storm, Cyclone, Earthquake, Subsidence/ Landslide