Industrial All Risk Insurance

Industrial units (excluding Petrochemical Risks) having Sum Insured of Rs. 100 crores and above in one or more locations in India are eligible to take Industrial All Risks Policy. This Policy offers comprehensive cover against all perils excepting those specifically excluded. The Policy covers loss or damage due to :

  • Fire and Special Perils
  • Burglary
  • Machinery Breakdown/ Boiler Explosion/ Electronic Equipment Breakdown
  • Business Interruption due to Fire and Special Perils, Burglary and other accidental damage.

Significant exclusions:

  • Inherent vice, normal wear and tear, collapse, faulty or defective design material or workmanship, pollution, contamination, inventory losses, fraud, larceny, interruption of the water supply, gas, electricity or fuel systems or failure of the effluent disposal systems etc.
  • Policy is subject to compulsory deductible excess as under:
    • Material Damage Claims: 5% of claim amount subject to a minimum of Rs 5 lacs and maximum of Rs. 50 lacs.
    • Business Interruption Claims: 3 days gross profit subject to a minimum of Rs. 5 lacs and maximum of Rs. 50 lacs.

Sum Insured:

  • Sum to be insured for the Material Damage part is the Reinstatement cost of the property. For the Business Interruption portion, annual gross profit is to be insured.


  • Premium depends on the exact cover opted, claims experience, deductible and risk assessment report of the engineer.


  • Business Interruption following Machinery Breakdown
  • Omissions to insure additions / alterations
  • Temporary removal of stock
  • Debris Removal
  • Escalation
  • Other extensions available under relevant tariffs