Bharat Laghu Udyam Suraksha Policy

Bharat Laghu Udyam Suraksha Policy is a standardized property insurance policy introduced by IRDAI for Small and Medium Enterprises (SMEs). It provides comprehensive protection against physical loss, damage, or destruction of business assets due to fire and allied perils. The policy is designed for businesses where the total value at risk at one location exceeds ₹5 Crore but does not exceed ₹50 Crore.

Key Features

• Designed for Small and Medium Enterprises (SMEs).
• Coverage for assets valued above ₹5 Crore and up to ₹50 Crore.
• Protection against Fire and Allied Perils.
• Earthquake Cover Included.
• Storm, Flood and Inundation (STFI) Cover Included.
• Terrorism Cover Included.
• Reinstatement Value Basis for Assets.
• Underinsurance Waiver up to 15%.
• Restoration of Sum Insured Available.

Eligibility

Property Covered

• Buildings and Structures.
• Plant and Machinery.
• Furniture, Fixtures and Fittings.
• Raw Materials.
• Stock in Process.
• Finished Goods.
• Other Business Assets.

Perils Covered

• Fire.
• Lightning.
• Explosion / Implosion.
• Aircraft Damage.
• Riot, Strike and Malicious Damage.
• Storm, Cyclone, Typhoon, Tempest and Tornado.
• Flood and Inundation.
• Earthquake (Fire and Shock).
• Landslide and Rockslide.
• Impact Damage.
• Terrorism.
• Bursting or Overflowing of Water Tanks and Pipes.

In-Built Covers

• Additions, Alterations and Extensions up to 15% of Sum Insured.
• Removal of Debris Expenses.
• Professional Fees.
• Temporary Removal of Stocks.
• Start-up Expenses.
• Cover for Specific Contents.
• Automatic Reinstatement of Sum Insured after Claim.

Special Benefits

• Compulsory Earthquake Cover.
• Compulsory Terrorism Cover.
• Compulsory STFI Cover.
• New-for-Old Reinstatement Value Settlement.
• Protection against Underinsurance up to 15%.
• Coverage for Machinery Temporarily Removed for Repairs.

Basis of Sum Insured

Major Exclusions

• War and War-like Operations.
• Nuclear Risks.
• Consequential Losses.
• Pollution and Contamination not arising from an insured peril.
• Bullion and Unset Precious Stones unless specifically declared.
• Wear and Tear.
• Willful Acts by the Insured.

Who Should Buy This Policy?

• Manufacturing Units.
• Warehouses.
• Hotels and Restaurants.
• Commercial Establishments.
• Industrial Units.
• Storage Facilities.
• Large Retail Businesses.

Why Choose Bharat Laghu Udyam Suraksha?

• Standardized IRDAI-approved product.
• Comprehensive protection for business assets.
• Includes earthquake, flood and terrorism cover.
• Reinstatement value claim settlement.
• Suitable for MSMEs with medium-sized asset values.
• Protection against major property-related risks.

Disclaimer

The above information is for general reference only. Coverage, exclusions, claim settlement terms, premium rates and policy conditions are subject to the latest policy wording issued by the insurer and IRDAI guidelines.