Bharat Laghu Udyam Suraksha (BLUS) Insurance Policy
Bharat Laghu Udyam Suraksha (BLUS) insurance is a product which provides coverage to the insured against fire or allied risks. Small and Medium Enterprises/businesses (SMEs) can avail this insurance to protect your business against natural calamity, explosion, fire, and terrorism. The BLUS insurance can only be purchased if the total insurable assets of a business are more than INR 5 crore or less than INR 50 crore.Read more
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Coverage of Bharat Laghu Udyam Suraksha (BLUS) Insurance
The building, along with the associated structures such as Fences, Security systems, Garages, etc., are covered by BLUS.
Plant and Machinery
The Plant and Machinery of a building, such as software, cables, pipes, and computers, are covered under BLUS.
Finished goods, Raw materials, and Stock in the process are covered under BLUS.
Other assets, such as furniture, pieces of equipment, and fixtures, are covered under BLUS.
Risks Covered Under Bharat Laghu Udyam Suraksha (BLUS) Insurance
Here are the following risks that are covered under BLUS Insurance policy:
FLEXA refers to Fire, Lightning, Explosion and Aircraft damage. BLUS Insurance policy provides coverage for aforementioned perils.
RSMD refers to riots, strikes, and malicious damage. For example, the insured property might get damaged due to riots, or a strike of labourers might occur in office premises, causing severe damages to the insured property.
Missile testing operations
The operation of testing a missile might cause severe damage to the property in the event of failure of the missile launch or in its execution. Therefore, the policyholder can buy fire insurance for the loss, destruction or damage caused to the insured property due to the missile testing operations.
The act of terrorism that damages the insured property is covered under the BLUS. Further, the insurer also offers coverage against the losses that can occur due to militant action. Let us understand this concept with the case law given below.
National Insurance Co. Ltd. V. Ashok Kumar Bararoo
In this case, the High Court of Jammu & Kashmir expressed the view and held that if a fire policy is obtained, then militant-related violence can also be covered under the policy. Therefore, for any loss to the insured property caused due to the militant action, the policyholder may approach the insurer for the settlement of claims.
Theft within seven days of the event
The Standard Fire and Special Policy (SFSP) generally exclude any loss that arises due to theft. Therefore, various insurers prefer to deny the claim for incidences arising out of burglary or robbery. However, it depends on the fact of the case if it should be added to fire insurance policy. For example, if a theft results in a fire, the insurance company is liable to cover the losses occurred due to the fire under the fire insurance policy. However, the insurer rejects the claim if theft occurs after the incident.
Nevertheless, some insurers allow the coverage of theft losses if the policyholder buys a fire insurance policy. BLUS insurance is one of the insurers covering theft losses after seven days after a fire incident.
Bharat Laghu Udyam Suraksha provides protection against losses to assets. In addition, it gives comprehensive risk coverage against the perilous event. Moreover, it offers multiple coverage options with no extra premium. Hence, the policyholder must consider buying BLUS.