Wednesday, March 13, 2019

FAQ for General Insurance for office

Many people do Standard Fire and Special Perils (SFSP) Policy for their office, without understanding the implication. This is only for the beginners. SFP is an insurance contract that safeguards the insured against unforeseen contingency caused by accidental fire, lightning, explosion/implosion, destruction or damage caused by aerial devices, man made perils in the form of riots, strike etc, natural calamities like storm, cyclone, flood etc, damage caused by impact by a rail or a road vehicle, damage cased by landslide or subsidence, peril caused by pollution and contamination, bursting and/or overflowing of water tanks, apparatus and pipes, missile testing operations, leakage from automatic sprinkler installations and bush fire.

SFSP Policy is a package insurance which covers the following set of perils :

Perils Covered:

  1. Fire
  2. Lightning
  3. Explosion / Implosion
  4. Aircraft damage
  5. Riot, Strike, Malicious damage (RSMD Perils)
  6. Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon and Tornado. (STFI)
  7. Impact by any Rail/ Road vehicle or animal belonging to third parties
  8. Subsidence / Landslide including rockslide.
  9. Bursting and / or overflowing of water tanks, apparatus.
  10. Leakage form Automatic Sprinkler Installation.
  11. Missile Testing Operation.
  12. Pollution or contamination resulting from any of the above perils
  13. Any insured peril resulting from pollution and contamination.
  14. Bush Fire

Out of these point no. 5 and 6  i.e. STFI and RSMD perils can be deleted at the inception of the policy for which suitable reduction in premium rate is allowed. If you want to reduce the premium , then you can ask STFI to be excluded from SFSP.

Please note Burglary, Cash in Transit , Theft is a separate policy and has nothing to do with SFSP.

Significant Exclusions from SFSP are :

        Losses/ Expenses not covered:

  1. Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind.

  2. Perils not covered:

  3. Riot, Strike or Malicious Damage losses arising out of:
    1. total or partial cessation of work
    2. Permanent or temporary dispossession resulting from order of the Government.
    3. Permanent or temporary dispossession resulting from the unlawful occupation by any person.
    4. Theft, larceny or omission by any person, in a malicious act.

    5. Following are the add on covers with additional premium and not part of SFSP :

    6. Earthquake (Fire and Shock)
    7. Terrorism
    8. Loss of rent.
    9. Insurance of additional expenses of rent for alternative accommodation.
    10. Start up Expenses

    11. Sum Insured:

    12. # Property can be insured on depreciated cost (market value) or replacement (or reinstatement) cost basis.

    13. # In order to get better protection, insurance on reinstatement (replacement) basis is recommended. The sum insured selected should be adequate for reinstatement.
    14. source: and

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