Bharat Laghu Udyam Suraksha Policy (BLUS)

Types of Covers: Bharat Laghu Udyam Suraksha Policy

1. Standard Cover: This includes coverage for buildings and structures, plant and machinery, stock, and other business-related assets.
2. In-built Covers: If the insurer agrees to pay your claim for loss or damage to insured property under the Standard Cover, they will also cover the following losses, damages, and expenses:
   1. Alterations, Additions or Extensions: Property that you erect, acquire, or add during the policy period is covered up to 15% of the sum insured for that item (excluding stocks).
   2. Temporary Removal of Stocks: Loss of stocks temporarily removed to other premises for fabrication, processing, or finishing is covered up to 10% of their value.
   3. Cover for Specific Contents:
      • Money up to ₹50,000 during the policy period.
      • Documents such as manuscripts, deeds, business books, drawings, plans and securities up to ₹50,000 during the policy period.
      • Computer programs, information, and data up to ₹5 lakhs during the policy period.
      • Personal effects of employees, directors, and visitors up to ₹15,000 per person, for a maximum of 20 people during the policy period.
   4. Start-Up Expenses: Start-up costs incurred due to insured events are covered up to ₹5 lakhs during the policy period.
   5. Professional Fees: Reasonable fees for surveyors, architects and consulting engineers are covered up to 5% of the claim amount.
   6. Costs for Removal of Debris: Reasonable expenses for debris removal up to 2% of the claim amount.
   7. Costs Compelled by Municipal Regulations: Additional costs of property reconstruction incurred solely to comply with municipal regulations.

Bharat Laghu Udyam Suraksha Policy: Add-ons

You can purchase the following standard add-ons by paying an additional premium:

• Floater Cover: Provides coverage for stocks at multiple locations under one sum insured.
• Declaration Policy for Stocks: Offers coverage for frequent fluctuations in stock values on a declaration basis.

Conditions under Bharat Laghu Udyam Suraksha Policy Help the Insured

If the building and structures, plant and machinery, stock, and other assets related to your business are lost, damaged, or destroyed due to unexpected events occurring during the policy period, this policy provides insurance coverage as follows:

Does BLUS Insurance Cover Entire Claim?

The policy will pay your claim if it is admissible under the terms and conditions of the Bharat Laghu Udyam Suraksha Policy. Each claim is subject to an 'Excess' provision, meaning you must bear the higher of ₹10,000 (Rupees Ten Thousand) or 5% of the claim amount, and the insurer will pay the remaining amount of the admissible claim. For terrorism risk, the Excess will be as per the clause attached to the policy.

Unexpected Events Covered under BLUS Insurance

The policy will cover physical loss, damage, or destruction caused to Insured Property by the following unforeseen events, detailed in Column A. Events not covered in respect of these are listed in Column B.

Basis of Sum Insured in Bharat Laghu Udyam Suraksha Policy

1. For Plant and Machinery, Building, Fixtures, Furniture, Fittings, and Other Contents: Coverage is provided at the Reinstatement Value.
2. For Stocks: a) Raw Material: Covered at the landed cost at your premises. b) Stock in Process: Covered at the input cost of the stock at the time of damage. c) Finished Stock: Covered at the manufacturing cost of the finished stock or the contract price of goods sold but not delivered.
   • The contract price applies to goods sold but not delivered, for which you are responsible, and the sale contract is cancelled due to damage insured under this policy, either wholly or to the extent of the damage. The company's liability is based on the contract price.
3. Bullion, Unset Precious Stones, Curios, Works of Art, or Obsolete Machinery: These items are covered on an agreed value basis, subject to the submission and acceptance of a valuation certificate by the insurer.

Reinstatement Value

This amount covers the cost to reinstate or replace the insured property with same property, without deducting depreciation, to restore it to a condition comparable to its new state on the date it was damaged or destroyed.

Bharat Laghu Udyam Suraksha Policy: Exclusions

Not all events and losses are covered. Some exclusions include:

• Loss or destruction to any electronic/electrikcal machine, fixture, apparatus or fitting due to over-running, short-circuiting, excessive pressure, self-heating, arcing or leakage of electricity from any cause (including lightning). This exclusion applies only to the particular machine affected.
• Contamination and Pollution
• Property that is missing or has been mislaid.
• Indirect loss or damage / Consequential Loss
• Costs, fees, or expenses incurred for preparing any claim.
• Bullion, unset precious stones, curios, or works of art unless specifically declared.
• Loss, destruction, or damage to stocks in cold storage due to a change in temperature.
• Deliberate, intentional or will-full act.
• Invasion, war or war-like operations.
• Ionizing radiation.
• Loss, damage, or destruction if the insured premises or building remains unoccupied for more than 30 days.

(*Please refer to the policy document for a complete list of exclusions.)

Property/Assets Coverage under BLUS Insurance

• Building with its basement (if any), fixtures, fittings, towers, garage, security sheds, lifts, internal roads, security systems, air conditioning systems, fire sprinkler systems, electric installations and other structures located on your business premises.
• Plant and machinery, spares, and accessories.
• Stock of goods or merchandise, including finished goods, semi-finished goods, stock in process, raw materials, and packing materials.
• Other items like furniture, office and electronic equipment, canteen and kitchen equipment, computers, etc.

Eligibility Criteria to Purchase BLUS Insurance

You can buy this cover for any property related to your business if you are the owner, lessee, tenant, buyer or hold it as a trustee on commission, or if you are responsible for it and liable for taking insurance. This cover is applicable for any commercial enterprise within the specified value limits of insurable assets as detailed below:

1. Eligibility for Purchase

If the insurable assets at any location are valued between ₹5 Crore and ₹50 Crore at the policy start date.

2. Changes in Insurable Asset Value

If the value of insurable assets changes beyond ₹5 Crore to ₹50 Crore during the policy period, policy and premium adjustments will be required.

3. Policy Options for Larger Enterprises

If your insurable assets exceed ₹50 Crore at the policy start date, you must purchase a policy for larger enterprises and pay its premium.

Bharat Laghu Udyam Suraksha Policy: Claim Process

If you suffer a loss covered by this policy, you must make a claim. The insurer will verify and accept the claim if it meets the policy's terms and conditions. Follow these steps when making a claim under BLUS insurance:

1. Notify the Insurer: Inform the insurer immediately after the loss occurs.
2. Report to Authorities: Notify the police, fire authorities, and other relevant legal authorities.
3. Prevent Further Damage: Take all reasonable steps to prevent further damage to the insured property.
4. Collect Evidence: Preserve and collect evidence, including taking and keeping photographs of the damage.
5. Assist the Insurer: Provide the insurer and its representatives with all necessary information, books of accounts, and documents to help them collect evidence and details.
6. Submit Claim Form: Submit the claim form as soon as possible, but within 30 days from the date you first notice the loss or damage.

By following these steps, you ensure a smooth and efficient claim process.