With the increase in materialistic wealth and booming economy, the chances of
burglary in business premises are also increasing. To counteract the situation
and protect the hard earned wealth of the businesspersons, many insurance
companies have come up with attractive insurance plans that promise to provide
cover against the rise of loss or damage in the business premises, due to
burglary. In India, a burglary insurance (business premises) policy generally
covers contents of business premises, against the risk of loss or damage by
burglary and housebreaking. It is very important to know the basic clause of the
insurance plans, although they may vary from company to company. In this
article, we have provided the basic information that you need to know, before
opting for a burglary insurance plan.
Burglary Insurance Policy
* The loss of materialistic wealth in a business organization, due to burglary,
is reimbursed by a burglary insurance policy.
* The insurance companies provide insurance against nothing but burglary, in the
business premises.
* The property insured is covered only if loss or damage takes place, while
contained in the insured premises and not in any other premises.
* Loss of or damage to deeds, bonds, bills of exchange, promissory notes, cash,
treasury notes and bank notes, cheque, securities for money stamps, stamp
collections, books of account, documents of any kind, manuscripts, medals and
coins, motor vehicles, and live stock cannot be claimed under office burglary
insurance policy in India.
* Damage to property by burglars is covered only when the insured is made good.
In other words, damage to own premises are not covered.
* With regard to cash in locked safe, the key to the safe or strong room should
not be left in the premises overnight or at least anywhere near the safe.
* Applicants need to submit the proposal form furnishing detailed information on
the location of the risk and claims history.
* Often inspection of the premises and its neighborhood is carried out by agents
or brokers or marketing officers of the insurance company.
* Premises located in isolated areas or the adjoining premises are those, which
are not occupied in the night. These may include educational institution or a
place of worship, which usually do not find favor with the insurers.
* In order to substantiate a burglary insurance claim, one must produce the FIR
and non-detection report from the police.
* The insurers will depute and obtain a survey report even on the stolen goods,
to determine the proximate cause of the loss and the quantum.
* Stock books and other accounts are also verified before furnishing the
insurance cover.
* In some insurance plans, the theft is not valid, if it has been conducted by
an internal staff, or a person who didn't break into the business premises. |
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