TrueInsureAgent
8
Fire & Property
Bharat Sookshma Udyam Suraksha is the standard SME wording

Covers buildings, plant, stock and fit-outs against fire, flood, earthquake, riot and impact. The whole line turns on one number: the declared value. Declare less than the true rebuild cost and the average clause cuts every claim proportionately, whatever the loss.

₹68,000
from, ₹2.6 Cr declared
31%
average claim cut from under-declaring
8%
discount for a monitored alarm

Illustrative figures until sourced from the insurer of record.

What it covers

Fire and allied perils

Flood, riot, impact, lightning

Stock and plant

Raw material to finished goods

Business interruption

Lost profit while shut

Debris removal

Clearing before rebuilding

Plans

Manufacturing unit, ₹2.6 Cr declared, Peenya

Premiums and claim-settlement ratios are illustrative until sourced from the insurer of record.

Bharat Sookshma Udyam

96.4% settled
Aegis General

The IRDAI standard wording, so genuinely comparable on price. Waives the average clause up to 15% under-declaration.

₹68,000
a year
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Standard Fire & Special Perils

93.7% settled
New India Assurance

Strongest on large industrial losses and interim payments. Slower paperwork, more reliable on big claims.

₹74,200
a year
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Property Protect

97.1% settled
Bajaj Allianz

Includes machinery breakdown and stock deterioration as standard, which are usually separate covers.

₹71,400
a year
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What it will not pay for

Read this before you buy.

  • Gradual deterioration, wear, rust and poor maintenance
  • Consequential loss unless business interruption was specifically bought
  • Stock deterioration from a power or plant failure — that is a separate cover
  • Undeclared locations and undeclared stock values
  • Damage while a fire NOC or statutory licence is expired
How a claim works

A property claim is decided by a surveyor at the site. What you preserve and photograph before clearing up is the difference between a full settlement and an argument.

  1. 01

    Make safe, then photograph

    · hour 1

    Stop further damage, then document everything before anything is moved. For fire, the fire-brigade report is essential.

  2. 02

    Surveyor appointed

    · 1–3 days

    On larger losses, an independent loss assessor. They establish cause, quantum, and whether your declared value was adequate.

  3. 03

    The average clause is applied

    · week 1–4

    If you declared ₹1.8 Cr against ₹2.6 Cr of assets, every claim is settled at 69% — even a partial loss well inside the sum insured.

  4. 04

    Settlement and interim payment

    · 4–12 weeks

    On large losses ask for an on-account payment to start rebuilding. Business interruption is paid against actual trading records.

The common mistake

Declaring the book value of plant after depreciation. Insurance rebuilds at today’s prices, not at your balance-sheet number — and the gap between them is exactly what the average clause takes off your claim.