Standard Fire and Special Perils Policy

This policy is applicable exclusively to land-based properties. The Fire Insurance Policy provides financial protection for the property against losses caused by fire and other specified perils. It also compensates for damages occurring immediately after a fire, including those caused by smoke, heat, scorching, falling walls, water, or any extinguishing media used to combat the fire. Additionally, it covers losses due to the collapse of floors and roofs resulting from fire and during the removal of property from the burning building in an effort to mitigate the loss. The coverage extends to tangible properties such as buildings, contents like machinery, plant and equipment, accessories, goods (raw materials/work in process/finished goods, packing materials, etc.), goods left in the open, furniture, fixtures and fittings, as well as pipelines (including contents) located inside or outside the compound.


This policy is a named perils policy that includes coverage for specific events such as fire, lightning, explosion/implosion, aircraft damage, storm, cyclone, hurricane, tornado, flood, impact damage, subsidence and landslide, riots, strikes, malicious damage, missile testing operations, leakage from automatic sprinkler installations, bush fire, bursting and/or overflowing of water tanks, apparatus, and pipes. Occupancies are categorized into non-industrial risks, industrial/manufacturing risks, utilities storage/warehouse risks, and tank farms/gas holders.


It represents the real value of the insured property and serves as the limit of liability under the policy. In case of under-insurance, the claim amount will be proportionately decreased by applying pro-rata average when a claim is made.


Reinstatement Value (RIV) Policy: In this case, the RIV (Reinstatement Value) clause is appended to the Fire Policy. The insured also has the choice to insure the property (excluding stocks) on a "Reinstatement value basis," which refers to the cost of replacing or reinstating it at the same location or any other site with property of the same kind or type, but not superior to or more extensive than the insured property when new as of the date of the loss. In the event of a loss, the amount payable is the cost of reinstating the property with a new one of the same kind and type.

Market Value Policy: This insurance mandates that the insured must declare sums insured that are not lower than the "Market value" of the insured property, which is the value at which property of the same age and condition can be bought or sold. Stocks are exclusively insured under a Market value Policy. The basis of settlement is the actual cost of the property lost or damaged at the time of the loss, excluding any profit considerations, while taking into account wear and tear and depreciation due to usage.

Types of Policy To Cover Stocks : To address the regular fluctuations in stock declarations, policies are issued with a sum insured chosen by the insured. Monthly declarations, dependent on the average value at risk or the highest value on any day of the month, are required to be submitted by the insured each month.

Floater Policy : Suitable for stocks located at different places under a unified sum insured.

Declaration Policy : Addresses the regular changes in stock or stock values.

Floater Declaration Policy : Incorporates characteristics from both floater and declaration policies.

More Covers

  • Fees for Architects, Surveyors, and Consulting Engineers (beyond 3% of the claim amount).
  • Removal of debris (beyond 1% of the claim amount).
  • Deterioration of goods in refrigerated storage.
  • Wildfire in the forest.
  • Damage caused by the insured's own vehicles or similar sources.
  • Self-ignition.
  • Failure to insure additions, alterations, or extensions.
  • Earthquake (including fire and shock).
  • Coverage for damage to spoiled materials.
  • Coverage for leakage and contamination.
  • Loss of Rent.
  • Extra costs for renting alternative accommodation.
  • Start Up Expenses.
  • Terrorism Cover.

Prohibitions :

  • Loss, destruction, or damage resulting from war, invasion, acts of foreign enemies, hostilities, or war-like operations.
  • Nuclear risks.
  • Environmental pollution or contamination.
  • Loss, destruction, or damage to bullion, unset precious stones, works of art, plans, drawings, securities, money, etc., and similar items.
  • Loss, destruction, or damage to stocks in cold storage facilities due to temperature fluctuations.
  • Loss, destruction, or damage to any electrical machine, apparatus, fixture, or fitting resulting from overrunning, excessive pressure, short-circuiting, arcing, self-heating, or electricity leakage, regardless of the cause (including lightning). However, this exclusion applies solely to the specific electrical item affected and not to other machines, apparatus, fixtures, or fittings that may be destroyed or damaged by the fire originating from the excluded item..
  • Costs unavoidably accrued on
  • Fees for Architects, Surveyors, and Consulting Engineers, as well as
  • The insured's removal of debris following loss, destruction, or damage to the insured property due to a covered peril, exceeding 3% and 1% of the claim amount, respectively.
  • Earnings loss, delay loss, market loss, or any other consequential or indirect loss or damage of any kind or description.
  • Loss or damage due to spoilage resulting from the delay, interruption, or cessation of any process or operation caused by the occurrence of any of the covered>
  • Any loss or damage caused directly or indirectly by earthquakes, volcanic eruptions, or other convulsions of nature.
  • Loss or damage to the insured property if relocated to any building or location other than the one specified in this policy, except for machinery and equipment temporarily moved for repairs, cleaning, renovation, or similar purposes, for a duration not exceeding 60 days.


This approach prohibits scope for the deductibles sketched out within the Plan for each misfortune beneath distinctive covers.