A number of insurance companies in India have come up with attractive insurance
policies for people owning small or medium-sized shops. Known as 'shopkeeper's
insurance policy', it covers all the risks and contingencies faced by small or
medium sized shop owners. In addition to this, the policy provides protection
for the property and the interests of the shop owners (including their partners)
in the business venture, who has applied for the insurance cover. Go through the
following lines to know more about shopkeeper's insurance policy.
Shop Keeper's Insurance Policy In India
* The shop keeper's insurance policy contains 11 sections, including the shop's
building, its contents, money stored in transit/counter/safe, pedal cycle, plate
glass, neon and glow signs, baggage, fidelity of the employees, the owner's
public liability, workmen's compensation liability as well as interruption of
business.
* The estimated cost of rebuilding the shop is calculated, which in turn gives
the value of the shop in question.
* The value and time of purchase of the contents of the shop are assessed before
providing an insurance cover to the shopkeeper. The valuables shall include
electrical as well as mechanical appliances present in the shop.
* Shop's employing manufacturing processes do not come within the ambit of
shopkeepers' insurance policy. This policy is applicable to shops, where the
value at risk including the building (if owned by the insured) does not exceed
Rs.10 lakhs during the policy year.
* Commercial outlets with a larger value at risk have to obtain separate
coverage for different perils.
* Loss or damage to livestock, motor vehicles, security stamps, deeds, bullion,
bonds, bills of exchange, stocks and share certificates, promissory notes,
business documents, manuscripts, precious stones and valuables cannot be claimed
under the shopkeeper's insurance policy.
* Other prominent exclusions include any misdemeanor involving any partner or
employee of the insured or his/her family member as principal or accessory, in a
housebreaking case.
* The insured cannot invoke the fidelity guarantee, regarding any infidelity by
a person other than a salaried employee of the insured.
Exclusions
* Loss or damage in the shop due to natural calamities such as earthquake,
cyclone, flood etc., is not covered by the insurance policy.
* If a family member of business staff is directly/indirectly involved in the
actual theft of the shop, then the damage caused by the situation shall not be
included in the policy cover.
* Some companies may charge extra money for the damage caused due to terrorist
activity.
* Damage caused due to war, invasion, foreign enemy hostilities, civil war,
mutiny, civil commotion, or nuclear activity is not covered by the insurance
policy.
* If the property insured has been removed to another place for the purpose of
renovation, cleaning or repairing, then the policy doesn't guarantee its
coverage. |
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