This policy is designed for business premises and covers stock in trade, goods held in trust or on commission, fixtures & fitting and utensils of trade
The proposal form should be completed providing very detailed information on the location of the risk and claims history. Often inspection of the premises and its neighborhood will be carried out. Premises located in isolated areas or the adjoining premises and such which are not occupied in the night (like educational institutions or places of worship) are not favorably considered.
This NIC policy is designed for business premises and covers property contained in business premises like furniture, fixtures, fittings, office equipment, electronic equipment, stocks in trade, or for which insured is responsible or held in trust and/or commission following an actual forcible and violent entry of and / or exit from the premises.
The Policy pays actual loss/damage to your insured property caused by burglary subject to the limit of Sum Insured. If Sum Insured is not adequate, Policy pays only proportionate loss
- The scope of cover is limited to burglary and house breaking only. It does not include related perils like larceny which are not covered by the definition.
- The claim amount reduces sum insured every time a claim is paid. However the sum can be reinstated on payment of pro-rata additional premium.
- Property insured is covered only when it is lost from the insured premises and not from any other location.
In the case of goods, which are of low value in high bulk, (such as cotton in bales, grain, sugar etc.) the risk of losing the entire stock on a single occasion is considered remote. The value that can be burgled is then ascertained as probable maximum loss and the premium is charged for this Maximum probable loss while covering the entire stock at risk.
Why You Must Buy This Policy
The policy is vital especially when the property is pledged with a financial institution. Normal security arrangements are necessary for an insurer to accept the proposal for insurance. Even if an elaborate security system is planned, the cost of such system will not be as expensive as the premium paid for the Burglary policy, as the risk is dispersed and distributed among the insuring public. In any case, good security system will benefit the insured in fixing the premium rating.