Types of Fire Insurance Policy in India

Fire is a major risk that can cause severe damage, often starting suddenly and destroying everything in its path. It's important to understand the different types of fire insurance policy available in India. Read on to learn more.

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Types of Fire Insurance Policy

In India, there are three main types of fire insurance policies:

  1. Bharat Sookshma Udyam Suraksha: Covers property with a sum insured up to Rs 5 Crores.
  2. Bharat Laghu Udyam Suraksha: Covers property with a sum insured between Rs 5 Crores and Rs 50 Crores.
  3. Special Fire & Special Perils (SFSP): Covers property with a sum insured beyond Rs 50 Crores.

Fire insurance plans can cover two types of assets: fixed and non-fixed. Fixed assets include buildings and machinery, while non-fixed assets include goods, stocks, and other valuables. Depending on your assets, you can choose the appropriate fire insurance plan.

Policies for Non-Fixed Assets:

Here are 6 different kinds of fire insurance policies for non-fixed assests:

  • Floater Policy: Ideal for goods at different locations, provided they belong to the same person.
  • Specific Policy: Covers risk up to a specific sum, usually lower than the asset's actual value.
  • Comprehensive Policy: Covers multiple and maximum risks, recommended for various businesses.
  • Valued Policy: Sum insured is specified at the time of purchase.
  • Valuable Policy: Claim amount is based on the current market price of the damaged property.
  • Consequential Loss Policy: Covers losses from business disruption due to fire.

Policies for Fixed Assets:

Here are 2 different types of fire policies for fixed assets:

  • Replacement Value Policy: Insurer pays the replacement value of the damaged asset.
  • Reinstatement Value Policy: Similar to the replacement value policy, but the insurer restores the property to its original condition before the loss.

Conditions for Claim Approval

Your claim will only be accepted under the following conditions:

  • Claims due to high temperatures are not covered. The loss must be caused by an actual fire, explosion, or ignition.
  • The primary or immediate cause of the loss must be fire.
  • The loss or damage must relate to the subject matter of the fire policy.
  • The explosion must involve either the goods or the property where the goods are stored.
  • The incident must be accidental. There is no coverage for intentional acts. If the fire is caused by a malicious act of the policyholder, the claim will be denied.
Explore Fire Insurance

Who can Opt Fire Insurance Policy?

A fire insurance policy can be opted for by:

  • Manufacturing firms and industrial entities.
  • Owners of buildings and their contents, such as household items and furniture.
  • Warehouse keepers and shopkeepers.
  • Any person, institution, firm, or organization that may face financial loss or damage in case of a fire outbreak.
  • Transporters.
  • Hospitals, hotels, clinics, lodging and boarding centers, and other related service providers.
  • Educational institutions, research institutions, banks, financial institutions, trusts, and charitable organizations.

Note: The incident must be accidental. There is no coverage for intentional acts. If the fire is caused by a malicious act of the policyholder, the claim will be denied.

Conclusion

Understanding the different types of fire insurance policies in India is crucial for protecting your assets from the devastating effects of fire. Whether you own a small business, a large industrial entity, or personal property, there is a suitable fire insurance policy available to meet your needs. By selecting the appropriate policy and meeting the conditions for claim approval, you can ensure financial security and peace of mind in the event of a fire. Remember, choosing the right fire insurance policy can make a significant difference in recovering from unexpected losses.

Disclaimer: Above mentioned insurers are arranged in alphabetical order. Policybazaar.com does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

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Policybazaar for Business - Fire Special Perils Insurance - Customer Reviews
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4.3/5
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4.3
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Based on 83 reviews
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4.8 October 09, 2022
Aaftab
Amazing Customer Support
I am using a fire insurance policy from policybazaar and experienced amazing feedback from them in claim settlement. I have a sports merchandise shop that caught fire last yearI raised a claim which was resolved within a few days without any hassles.
Thiruvananthapuram
4.8 October 08, 2022
Balachandar
Helpful Support
The support team of Policybazaar is really helpful and prompt. They solve all your queries fast. Would definitely recommend Policybazaar for purchasing insurance .
Mangaluru
4.8 October 07, 2022
Raahim
Extensive Cover
Got a fire insurance policy for my shop and it was really extensive with so many features. Purchased it from Policybazaar without paying any commission fees. Great coverage.
Bengaluru
4.5 October 06, 2022
Aadi
User Friendly Website
We deal in the cotton industry and suffered a huge loss last year because of the fire. We were looking for insurance to safeguard us financially from any such incident in the future. We landed on the policybazaar website and bought fire insurance. Their website is well managed and gives all the necessary information.
MP
4.8 October 05, 2022
Rohit
Plans Are In Budget
Had to purchase a fire insurance which should be in my budget as I run a very small store. Got a lot of affordable plans on Policybazaar and purchased the one that suited my budget. All plans are in budget and with so many features.
Bhopal
4.3 October 04, 2022
Baban
Covered My Shop
I have a shop of garments and it caught fire last year in which I lost items worth thousands. Purchased a fire insurance from Policybazaar and now I feel really relieved that it would financially cover my shop in such circumstances.
Chandigarh
4.3 October 03, 2022
Aarnav
Faster Claim Settlement
A part of my warehouse having thousands of material caught fire. Luckily I had a fire insurance policy that I could claim and received compensation from them. It was such a relief. The claim settlement team at Policybazaar is helpful and really quick.
Assam
4.5 October 02, 2022
Jagadish
Affordable
I have a warehouse of clothes and was planning to buy a fire insurance policy to cover my material from unwanted fire. Got a really affordable plan from Policybazaar with some really great features.
Ahemdabad
4.5 October 01, 2022
Rahul
Budget Friendly
Wanted to cover my crockery shop from fire and was searching for an affordable plan. Found a great plan at Policybazaar which suited my budget.
Surat
4.5 September 30, 2022
Baabul
Instant Purchase
Wanted a fire insurance policy for my crockery business and could purchase it instantly from Policybazaar. The process was quick instant and very easy.
Gurgaon