What Are In-built Covers Under Bharat Sookshma Udyam Suraksha Commercial Insurance Policy?

The Bharat Sookshma Udyam Suraksha Commercial Insurance Policy is an insurance plan tailored specifically for Indian Micro, Small, and Medium Enterprises (MSMEs). It offers various types of coverage which can prove valuable to entrepreneurs looking to secure their finances against unpredictable events. Along with the standard covers of the plan, this general insurance plan also offers multiple in-built covers. These covers complement the standard coverage of the plan and increase the scope of financial security the insured person can enjoy. Let’s look at the in-built covers under the Policy. Claims are subject to terms and conditions set forth under commercial insurance policy.

In-built Covers under the Bharat Sookshma Udyam Suraksha Commercial Insurance Policy

For the uninitiated, in-built cover refers to the events and/ or situations, or expenses/ losses suffered by the policyholder that the insurer covers, along with the insured events. * An important point to note about in-built covers:  The insurer pays for the losses/ damages/ expenses specified in the in-built covers section only if they have agreed to pay for loss or damage to the insured property. * Claims are subject to terms and conditions set forth under commercial insurance policy. Now that that is clear, let’s proceed to the in-built covers within the Bharat Sookshma Udyam Suraksha Commercial Insurance Policy:

1. Additions, alterations, or extensions *

The insurer shall cover the buildings, plant, machinery, furniture and fittings, or other contents, in the insured premises which the insured will erect, acquire, or for which the insured will become responsible after the commencement date of the policy. The payment shall be done as follows:

1. The insured informs the insurer of the item so erected within 7 days of it becoming known to them
2. It is not insured in other manners
3. Maximum limit under this cover is 15%, excluding stocks
4. Subject to the underinsurance clause of the relevant clause within the policy.

2. Stocks at multiple locations on floater basis *

The insurer shall cover physical loss or damage to movable property in more than one location as follows:

1. The insured has declared all locations, and they show in the policy schedule
2. The stocks are declared as a single value reflecting the aggregate sum insured
3. The insured has a good internal audit accounting procedure under which the total amount at risk and the locations can be established
4. Any change in the locations must be informed to the insurer.

3. Temporary removal of stocks *

Under this in-built cover of the Bharat Sookshma Udyam Suraksha Commercial Insurance Policy, the insurer shall cover the stocks temporarily removed to any other premises. This may be due to fabrication, processing or finishing, or other similar purposes. The coverage is subject to the following conditions:

1. Maximum cover is 10% of the sum insured for the stock
2. The stock is not otherwise insured.

4. Cover for specific contents *

Within this cover of the general insurance policy, the insurer shall cover the following as applicable:

1. Money, not exceeding ₹50,000.
2. Deeds, manuscripts, business books, plans, drawings, securities, obligations, documents of any kind, extending only to the materials cost and clerical labour expended in reproducing these records not exceeding ₹50,000.
3. Computer programmes, information and data, with the same condition as in the previous point, with the exception of the amount not exceeding ₹5 Lakhs.
4. Employees’, directors’, and visitors’ personal effects (excluding motor vehicles) not exceeding ₹15,000 per person for a maximum of 20 persons.

5. Start-up expenses *

The insurer shall cover the costs incurred by the insured in respect of the insured event, consequent upon the loss or damage covered by this policy, with the amount not exceeding ₹1 Lakh.

6. Professional fees *

The insurer will pay the expenses incurred by the insured towards architects, surveyors, and consulting engineers, subject to the following:

1. The fees are for preparing plans, specification tenders and quantities, and services in connecting with the superintendence of the reinstatement of the insured building, machinery, accessories, or equipment
2. The maximum cover is 5% of the claim amount.
3. Fees or costs for preparing any claim or estimate of loss or damage by the insured events shall not be covered.

7. Costs for removal of debris *

The insurer shall pay for the removal of debris of any insured property from the premises, and dismantling, demolishing, shoring up or propping up of insured building or machinery. The maximum cover is 2% of the claim amount.

8. Costs compelled by municipal regulations *

Under this MSME insurance plan, additional costs of reconstruction or reinstatement of the insured property are covered, solely based on compliance with regulations/by-laws of municipal/local authorities, or legal provisions. This cover is subject to multiple conditions specified in the policy wordings. Claims are subject to terms and conditions set forth under commercial insurance policy. All coverages under the Bharat Sookshma Udyam Suraksha Commercial Insurance Policy, whether it be the standard fire insurance coverage or the above-listed in-built covers, are subject to the terms and conditions, and exclusions listed in the policy.   * Standard T&C apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.