Bharat Laghu Udyam Suraksha Policy (BLUS) insurance covers your business property. With this policy, the insurer agrees to compensate you for losses incurred due to unexpected events causing physical loss, damage, or destruction of buildings and structures, plant and machinery, stock, and other business-related assets. BLUS insurance can be purchased if a business has total insurable assets valued between INR 5 crore and INR 50 crore.
You can purchase the following standard add-ons by paying an additional premium:
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:
| Loss | Condition | Policy Payment |
| Any partial loss to insured propeorty | You have repaired such property. | Cost of repairs, not exceeding the Sum Insured |
| Any partial loss to insured stock. | - | Extent of the partial loss, not exceeding the Sum Insured. |
| Any Machine. Plant, Furniture or building is completely destroyed (Total Loss) | You have rebuilt the building or reinstated such property. | Reinstatement Value, not exceeding the Sum Insured |
| Total loss of stock | a) For raw material: Cost of raw material after being landed at Your Premises. b) For stock in process: At the time of damage, stock's input cost c) For finished stock: Manufacturing Cost of the Finished Stock or the Contract Price of goods sold but not delivered. |
Cost of stock as detailed, not exceeding the Sum Insured. |
| Total loss of any Furniture, Machine, Plant or building |
|
Market Value (Reinstatement Value less Depreciation), not exceeding the Sum Insured |
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.
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.
|
Covered Events |
Events Not Covered |
|---|---|
| 1. Fire, including due to its own fermentation, or natural heating, or spontaneous combustion. | a. Heating or drying process. b. Burning of Insured Property by order of any Public Authority. |
| 2. Explosion or Implosion | a. Economizers, Boilers or other vessels, machinery, or apparatus in which steam is generated, or their contents. b. Centrifugal forces. |
| 3. Lightning | - |
| 4. Volcanic eruption, eathquake or other convulsions of nature | - |
| 5. Hurricane, Cyclone, Typhoon, Tempest, Tornado, Tsunami, Storm, Flood, and Inundation | - |
| 6. Subsidence of the land on which Your Premises stand, Rockslide, Landslide | a. Normal cracking, bedding down or settlement of new structures. b. Settlement or movement of made-up ground. c. Coastal or river erosion. d. Design is defective or use of defective materials. e. Demolition, structural alterations, construction or repair of any property, or ground works or excavations. |
| 7. Bush fire, Jungle Fire, Forest fire | - |
| 8. Impact damage of any kind (e.g., vehicle, falling trees, aircraft, wall) | a. Pressure waves caused by aircraft or other aerial or space devices traveling at sonic or supersonic speeds. b. Vehicle, animal, or aircraft belonging to or owned by Insured or their employee while acting in course of employment. |
| 9. Missile testing operations | - |
| 10. Strikes, Riots, Malicious damages | a. Total or partial cessation of work, or interruption, the retardation or cessation of any process or operations or omissions of any kind. b. Temporary or permanent dispossession, commandeering, confiscation, requisition, or destruction by order of the government or any lawful authority. c. Temporary or permanent dispossession of any Building by unlawful occupation by any person. |
| 11. Bursting or overflowing of water tanks, pipes and apparatus | - |
| 12. Leakage in automatic sprinkler installations | a. Repairs or alterations in the Building where Your Business is located. b. Repairs, removal, or extension of any sprinkler installation. c. Defects in the construction known to You. |
| 13. Within the 7 days of theft and proximately caused by, any of the above Insured Events | a. Theft of any article or thing outside Your Premises. b. Theft of any article or thing attached from the outside of the outer walls or the roof of Your Premises, unless securely mounted. |
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.
Not all events and losses are covered. Some exclusions include:
(*Please refer to the policy document for a complete list of exclusions.)
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:
If the insurable assets at any location are valued between ₹5 Crore and ₹50 Crore at the policy start date.
If the value of insurable assets changes beyond ₹5 Crore to ₹50 Crore during the policy period, policy and premium adjustments will be required.
If your insurable assets exceed ₹50 Crore at the policy start date, you must purchase a policy for larger enterprises and pay its premium.
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:
By following these steps, you ensure a smooth and efficient claim process.
Ans: You can cancel the policy anytime during its period, and a portion of the premium will be refunded. The insurer may cancel only for misrepresentation, non-disclosure, fraud, or non-cooperation from the insured.
Ans: To renew the policy, apply before the end of its period and pay the premium. Renewal isn't automatic; the insurer may request information and can reject renewal for misrepresentation, non-disclosure, fraud, or non-cooperation.
Ans: Yes, you can make changes to the covers of this policy, such as taking additional cover or adjusting the sum insured. You must submit a proposal or request for any change, which will be effective only after the insurer accepts your proposal and you have paid the additional premium where applicable.
Ans: If you are an individual who dies during the policy tenure, the policy will continue for the benefit of your legal representatives until the policy expires.
Ans: The Bharat Laghu Udyam Suraksha policy will continue until expiry. Upon renewal, the policy must be replaced with the appropriate coverage.
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