Covers accidental loss, destruction or damage to the property, except as excluded (e.g. faulty or defective design, inherent vice, latent defects, explosion of boilers, sonic bangs, collapse and others that may be applicable in real terms to certain categories of equipment). Many of the exclusions can be bought back. The property insured is industrial and commercial plant and equipment. Cover is often arranged on a first loss basis.
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The scope of cover under “All Risks” insurance is determined by its exclusions i.e., “what is not excluded specifically is covered.” An all risks policy to cover industrial risks. Each insured (a separate legal entity-sister concern or otherwise within a complex may avail of separate IAR policy. A separate IAR policy for different types of Industrial Units (Pharmaceutical, Engineering Workshop, Plastic Industries etc.) may be allowed for the same insured within one complex provided each unit. The Policy covers: Section I-Material Damage and Section II-Business Interruption. Policy is an all risks/perils other than those which are specifically excluded. The cover in its widest form will include the following perils/covers: a) Fire and all Special Perils b) Burglary c) Machinery Breakdown/Boiler Explosion/Electronic Equipment Insurance d) Business Interruption (Fire and all Special Perils) The Machinery Loss of Profit cover is optional and can be included. It is essential that the sum insured on Buildings, Machinery, furniture, fixtures and fittings and Electrical installations is fixed on the basis of Reinstatement values and stock on market value. Mid-term increase on material damage sum insured on pro-rata and decrease on short-period. The sum insured for Business interruption to be based on at least the previous years Balance sheet. Special Exclusions to Section I (Material Damage) Excluded properties:Jewellery, precious stones, precious metals, bullion, furs, curios, rare books or works of Art, standing timber, growing crops, livestock, property removed except machinery and equipment temporarily removed for repairs within India for a period not exceeding 60 days, property in course of demolition, construction or erection, property in transit, licensed road vehicles, land etc unless specified in the policy, property at the time of happening of damage is insured by a marine insurance policy, exposure to weather conditions if left in open, documents, manuscripts, etc unless specifically insured. As regards MB Cover accident, loss damage or liability resulting from overload experiments or test requiring the imposition of abnormal condition is excluded as also are excluded property for which a manufacturer, supplier, contractor or repairer is responsible.

life assurance, formerly of far more significance, run on ‘home service’ lines, with premiums collected at the door at regular intervals.

A disease or illness suffered by an employee as a result of working on an industrial process or in harmful working conditions. Benefits are payable by the state under the Social Security (Industrial Injuries) (Prescribed Diseases) Regulations 1985 as amended. The victim may also be able to sue the employer for negligence or breach of statute. Prescribed diseases include asbestosis and mesothelioma; silicosis (mines and quarries); byssinosis (respiratory, cotton); tenosyniovitis (conveyor work, pottery); lead poisoning (glass, scrap metal, lead); cancer; dermatitis; occupational deafness including tinnitus.

A social security benefit payable tax free to employees who either (a) suffered an accidental injury arising in the course of work; or (b) contracted a prescribed disease or prescribed injury while working. It is a no fault compensation scheme running parallel with any rights the injured party may have against his employer. Benefits include the industrial injuries disablement benefit payable for loss of capacity through an industrial accident or prescribed disease. Payments are based on the percentage disablement caused by the injury, e.g. 40 per cent disablement attracts £46.72 per week (2003).

Low value life and savings policies issued by industrial life offices and friendly societies. Premiums were formerly collected at regular intervals, e.g. weekly/fortnightly, from the homes of the policyholders. Premiums are now generally paid by monthly bank mandate.