Mak

Presentation
on

Bharat Sookshma Udyam Suraksha

and
Bharat Laghu Udyam Suraksha
Introduction:
• These Policies came into effect from 1st April 2021.

• Bharat Sookshma Udyam Suraksha can be given where the total value at risk across all
assets at one location does not exceed ₹ 5 Crore (Rupees Five Crore) at the policy
commencement date.

• Bharat Laghu Udyam Suraksha is given where the total value at risk across all assets at one
location exceeds ₹ 5 Crore (Rupees Five Crore) but does not exceed ₹50 Crore ( Rupees
Fifty Crore) at the policy commencement date.

• Standard Fire and Special Peril Policy will be given to enterprises where the total value at
risk across all assets at one location exceeds ₹ 50 Crore (Rupees Fifty Crores) at the policy
commencement date.
 Property Which can be covered
1. Any Building or structure
• Basement (if any), all fixtures and fittings permanently attached to the floor, walls or
roof like electrical wiring, antennas etc.
• Additional Structures
• garage, out-houses, security sheds, towers, verandah or porch, tanks, compound
walls, retaining walls, fences and gates, internal roads,
• lifts, hoists,
• solar panels, wind turbines and air conditioning systems, central heating systems,
security systems and cameras, electrical installations, fire alarm, fire sprinkler
systems, power lines, power installations, or
• water, gas and sewage pipeline within the premises

Strictly for Internal Circulation and Reference Purpose Only

 Property Which can be covered
2.Plant and machinery: It includes machines under repair , machines taken on hire or lease,
or any system of purchase of goods, foundation, bedding or setting of the machines, or
accessories of machines

3.Stock of goods or merchandise which may include finished goods, semi-finished goods,
stock in process and raw material, packing material etc.

4.Other items like furniture, office and electronic equipment, canteen and kitchen
equipment, computers etc.

Strictly for Internal Circulation and Reference Purpose Only

Bharat Sookshma Udyam Suraksha and Bharat Laghu Udyam Suraksha | In-Built Coverages
Sr. Coverages

No
Fire, including due to its own fermentation, or natural heating or spontaneous
1
combustion.
2 Explosion or Implosion
3 Lightning
4 Earthquake, volcanic eruption, or other like convulsions of nature
Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Tsunami, Flood and
5
Inundation(STFI)
6 Subsidence of the land on which Building stands, Landslide, Rockslide
7 Bush fire, Forest Fire, Jungle Fire
Bharat Sookshma Udyam Suraksha and Bharat Laghu Udyam Suraksha | In-Built Coverages
Sr. Coverages

No
Impact damage of any kind, i.e., damage caused by impact of, or collision caused by
8 any external physical object (e.g. vehicle, falling trees, aircraft, wall etc.)
9 Missile testing operations
10 Riot, Strikes, Malicious Damages( RSMD)
11 Acts of terrorism (Coverage as per Terrorism Clause attached)
12 Bursting or overflowing of water tanks, apparatus and pipes
13 Leakage from automatic sprinkler installations
Theft within 7 days from the occurrence of and proximately caused by any of the
14 above Insured Events
 Bharat Sookshma Udyam Suraksha and Bharat Laghu Udyam Suraksha | In-Built Coverages
Sr. No Coverages Sum Insured
15 Additions, alterations or extensions in the insured premises (excluding Up to 15% of Sum
stocks) Insured
16 Temporary removal of stocks Up to 10% of the Sum
Insured of stocks
17 Stocks on floater basis (Optional Cover under Go Digit Bharat Laghu Sum Insured
Udyam Suraksha )
18 Cover for Specific Contents
i) Money Up to INR 50,000
ii) Documents such as deeds, manuscripts, business books, Up to INR 50,000
plans, drawings, securities etc.
iii) Computer program, information and data Up to INR 5 Lakhs
iv) Cover for personal effects of employees, Directors and visitors Up to 15,000 per person
max up to 20 persons

Stri ctly for l Circulation and Reference Purpose Only

 Bharat Sookshma Udyam Suraksha and Bharat Laghu Udyam Suraksha | In-Built Coverages
Sr. No Coverages Sum Insured
19 Start-Up Expenses Up to INR 1 Lakhs (For
Sookshma Suraksha )
Up to INR 5 Lakhs (For
Laghu Suraksha )

20 Architect’s, surveyor’s, consulting engineer’s fees 5% of Claim Amount

21 Cost for removal of Debris 2% of Claim Amount

22 Costs compelled by Municipal Regulations Sum Insured

Strictly for Internal Circulation and Reference Purpose Only

 Standard Add-ons under Sookshma Udyam Suraksha and Laghu Udyam Suraksha
S.No. Coverages
1. Declaration Policy for Stocks (to take care of frequent fluctuations in stocks/ stocks value) – Applicable for both Sookshma
and Laghu Udyam Suraksha
2. Floater Cover (Cover for stocks at multiple locations under one Sum Insured) – Only Applicable for Laghu Udyam Suraksha

Strictly for Internal Circulation and Reference Purpose Only

 | Major Exclusions

• Excess of INR 5,000 for each and every claim (For Go Digit , Bharat Sookshma Udyam Suraksha)
• Excess of 5 % of each claim, subject to a minimum of ₹ 10,000 (For Go Digit, Bharat Laghu Udyam Suraksha)
• Fire caused by its undergoing any heating or drying process,or burning of Insured Property by order of any Public Authority.
• Explosion or implosion caused to boilers, economizers or other vessels, machinery or apparatus in which steam is generated, or their
contents, resulting from their own explosion or implosion, or caused by centrifugal forces.
• Impact Damage caused by vehicle, animal or aircraft belonging to or owned by Insured or their employee while acting in course of
employment.
• Costs, fees or expenses for preparing any claim.
• Any reduction in market value of any Insured Property after its repair or reinstatement.

Please refer to Policy Wordings for further list of exclusions.

Strictly for Internal Circulation and Reference Purpose Only

 Basis of Sum Insured
1. For Building, Plant and Machinery, Furniture, Fixture and Fittings and any other contents: Reinstatement Value

2. For Stocks:
a. For raw material: Landed Cost at Your Premises.
b. For stock in process: Input Cost of the stock at the time of damage,
c. For finished stock: the Manufacturing Cost of the finished stock or the Contract Price of goods sold but not delivered
d. Contract Price is in respect only of goods sold but not delivered, for which You are responsible and with regard to which
under the conditions of the sale, the sale contract is cancelled by reason of any damage insured under this Policy either
wholly or to the extent of the damage. The Company’s liability shall be based on the Contract Price.

3. Bullion or unset precious stones, any curios or works of art or obsolete machinery and the like are to be covered on
Agreed Value basis subject to a valuation certificate being submitted and found acceptable by the Company.

11
Comparison of SFSP with Laghu Udyam Suraksha

14
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15
Comparison of SFSP with Sookshma Suraksha

16
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17
 Thank You

For Internal circulation and training purpose only