Bharat Sookshma Udyam Suraksha Insurance Policy – Detailed Guide

What is Bharat Sookshma Udyam Suraksha Policy?

Bharat Sookshma Udyam Suraksha Insurance Policy (BSUS Policy) is a Fire Insurance Policy which provides protection to insured assets with a Sum Insured of less than Rs5 Crores. All types of assets like plant and machinery, warehouse stocks, buildings etc can be covered under a Bharat Sookshma Udyam Suraksha Policy. This Insurance Policy is useful for Small and Medium Sized businesses with a Sum Insured of less than Rs5 Crores. 

What are the perils covered under Bharat Sookshma Udyam Suraksha Policy?

A Bharat Sookshma Udyam Suraksha Policy provides insurance against the following Perils:

1. Fire, including due to its own fermentation, natural heating or spontaneous combustion
2. Explosion and Implosion
3. Lightning
4. Earthquake, Volcanic Eruption or other convulsions of nature
5. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Tsunami, Flood and Inundation (STFI Cover)
6. Subsidence, Landslide or Rockslide
7. Bushfires, Forest Fire, Jungle Fire
8. Impact Damage caused by any external physical object
9. Loss or Damage due to Missile Testing Operations
10. Riot, Strikes, Malicious Damage (RSMD)
11. Terrorism
12. Bursting or Overflowing of Water Tanks, Apparatus and Pipes
13. Leakage from Automatic Sprinkler Installations
14. Theft within 7 days of occurrence of damage due to above Insured Perils

What are the in-built covers under Bharat Sookshma Udyam Suraksha Insurance Policy?

Bharat Sookshma Udyam Suraksha Policy provides the following add-on covers in addition to providing reimbursement for damage caused by any of the Insured Perils:

1. Additions, Alterations or Extensions: The BSUS Policy provides reimbursement for any property that the Insured may erect, acquire or add during the Policy Period upto 15% of the Sum Insured.
2. Temporary Removal of Stocks: The Bharat Sookshma Udyam Suraksha Policy provides reimbursement has an Inbuilt Cover for loss to stock temporarily removed to other premises for fabrication, processing or finishing upto 10% of the value.
3. Start-Up Expenses: The BSUS Insurance Policy also pays for Start-Up Cost incurred by the Insured following damage by an Insured Peril upto a sum of Rs1 Lakh Rupees
4. Professional Fees: The Bharat Sookshma Udyam Suraksha Policy also pays for reasonable fees for architects, surveyors and consulting engineers upto 5% of the Claim Amount.
5. Cost for Removal of Debris: The Bharat Sookshma Udyam Suraksha Policy pays reasonable expenses for Removal of Debris upto 2% of the Claim Amount.
6. Costs compelled by Municipal Regulations: The Policy also has a provision for additional cost of reconstruction of property incurred solely for complying with Municipal Regulations.

What are the exclusions under Bharat Sookshma Udyam Suraksha Insurance Policy?

The BSUS Insurance Policy will not pay any losses arising out of the following:

1. Insured Property undergoing any heating or drying process
2. Burning of Insured Property by order of any public authority
3. Damage caused to Boilers or Economisers or other vessels or other vessels, machinery or apparatus in which steam is generated or their contents resulting from their own explosion or implosion
4. Damage caused by centrifugal forces
5. Damage caused by normal cracking, settlement or bedding down of new structures
6. Destruction caused by total or partial cessation of work or the retardation/interruption/cessation of any process or operations

What are the factors affecting the cost of Bharat Sookshma Udyam Suraksha Policy?

The following factors affect the premium of Bharat Sookshma Udyam Suraksha Policy

1. Risk Profile of the Insured Business: The Premium of the BSUS Policy will be higher for a riskier business (Say, chemical business) as compared to a business with a lower risk component (say an office premises)
2. Sum Insured: The premium of Bharat Sookshma Udyam Suraksha Policy will be higher for properties with a higher Sum Insured.
3. Fire Protection Measures at Insured Premises: The Risk and Fire Protection Measures installed at the business premises impact the discount and consequently the premium of Bharat Sookshma Udyam Suraksha Policy. For example, the premium of a business with a Fire Extinguisher installed at premises will be lower than the Insurance Premium for a business with no fire extinguisher installed.

Who is eligible to purchase a Bharat Sookshma Udyam Suraksha Policy?

The following people are eligible to purchase a Bharat Sookshma Udyam Suraksha Policy:

1. The Insured owns or occupies or uses the property under lease
2. The Insured occupies the property as a purchaser under an agreement of sale or lease
3. The Insured holds the property under in trust or commission or is responsible for it

Conclusion

The Bharat Sookshma Udyam Suraksha Policy is an important insurance policy for small and medium enterprises as it provides comprehensive fire insurance coverage and protects them from losses. If you wish to purchase a Fire Insurance Policy for your factory you can email us at insurance@qian.co.in or call us on 022-22044989.

We would be glad to assist you