Fire & Burglary Insurance

This insurance is intended to cover contents of business premises against loss or damage by burglary and / or house breaking. It also covers damage to premises, caused by burglars, during the burglary or any attempt thereat if the insured is responsible for such repairs. The term “burglary” and / or house breaking are defined in the policy a

theft, involving entry into or exit from the Insured premises by forcible and violent means. The entry could also follow assault or violence or threat of the same, to the insured or to his employees or members of his family.

Normally the policy does not cover loss due to theft or shoplifting which in most trades, is inevitable and must be regarded as not payable. The policy does not cover loss or damage due to burglary, in which any member of the Insured’s family of staff is concerned as principal or accessory. Any act committed by any person lawfully present in the premises is also not insured.

Whenever possible, the property to be insured will have to be itemised according to its nature. The value of the items will have to be inserted in the schedule of the policy separately.

For example :-

  1. Stocks belonging to the insured and held in trust or on commission for which the insured is responsible.
  2. Furniture, fixtures and fittings.
  3. Cash, currency or valuables kept in locked standard safe or cash box in locked steel cupboard.
  4. Other items to be specified.

It is desirable for an inspection to be made as to whether the safeguards to prevent entry into the premises by burglars are satisfactory. If not, further precautions must be taken. Normally, it is necessary to arrange for completion of an inspection report after obtaining necessary information. Particular attention must be paid to the following :

  1. Cellar and basement windows and doors.
  2. Glass panelled doors.
  3. Rear ground floor windows and doors.
  4. Windows on other floors which may be accessible from out-houses and adjoining buildings.

In the case of a change of address during the currency of the policy, it is necessary for a survey of the new premises to be made in the same way. Subject to security arrangements being satisfactory, the policy can be endorsed to cover property at the new address.


The policy covers the contents contained within the premises mentioned in the policy schedule against loss or damage by burglary and/or house breaking. It extends to cover any damage to the said premised by the risks insured that should be made good by the insurer. The burglary policy can be extended to cover theft on payment of additional premium.


The policy does not cover loss or damage to or arising from or occasioned by:

  1. War, warlike operation etc.Civil War, Mutiny, Rebellion, Revolution, Insurance, Riot, Strike, Civil Commotion or Loot, confiscation or Detention by the order of any Government or Public Authorities, Flood, Hurricane, Subterranean Fire, Earthquake and other similar convulsions of Nature and atmospheric disturbance.
  2. By any of the insured’s family or employees or any person lawfully in the premises. Or where such loss or damage has been expedited or in any way assistedor brought about by any inmate or member of such household staff as principal or accessory.
  3. Losses that the recoverable under fire or plate glass insurance policy.
  4. Goods held in trust or on commission or gold or silver articles, watches, jewellery, precious stones, medals, coins, curios, furs, sculptures, manuscripts, rare books, plans, patterns, models, moulds, designs, deeds, bonds, bills of exchange, promissory notes, money or securities for money, stamps or stamp collections, documents of title to property or business books unless specifically insured.
  5. Loss of money and / or other property abstracted from safe following use of the key to the said safe or any duplicate thereof belonging to the insured unless such key has been obtained by assault or violence or any threat.
  6. Nuclear risks.
  7. i. If there be any material alterations in the premises where by the

risk is increased.

  1. If the interest of the insured in the property is passed on to others, otherwise than by will or operation of law.
  2. Loss arising from ioinsing radiation or contamination by radio activity from any source or any consequential loss / legal liability arising out of it.
  3. If the premises is left unoccupied for more than seven days consecutively.


In case where bulk and heavier stocks are to be covered insurance on full value basis need not be arranged. Here a First Loss Policy may be issued. Under this policy, the sum insured may not be less than 10% of the total amount. This may be reduced in individual cases. The condition of average is modified, as applicable to the percentage chosen of the amount at risk. This amount is the maximum liability of the Company. The premium for this insurance will be the basic premium for the first loss amount, plus an additional premium based on a percentage of the premium rate so charged. This additional premium will be calculated on the balance of the aggregate amount.


In case of insurance of fluctuating stocks, a declaration policy can be suggested on similar lines as in the case of corresponding fire policies. The declaration policies will have to be approved by Regional Offices. Deposit premium of 100% of the annual has to be submitted before the inception of risk.

A) Stock in trade or goods in custody of Insured :

  1.  Cash/Valuables kept in locked deposit vaults/strong rooms of banks/safe deposits 0.125%
  2.  Vulnerable goods like curios, liquors, metals, motor vehicle parts, pens, radios,readymade garments, Electronic gadgets, wrist watches etc., 0.30%
  3.  Other general goods 0.15%
  4.  Heavy stock like machinery and other bulky goods 0.05%

Heterogeneous stock will have only one overall rate applied, keeping in mind the proportion of the various types of goods constituting the mix.

    B) Furniture Fixtures Fittings, utensils and appliances of trade.

  1.  More portable and valuable appliances of trade etc.,0.10%
  2.  Goods of general type 0.05% Intention is not to apply different rates for the same insured, but to rate according to preponderance of bulky or portable items.

    C) Cash and / or Valuables

In locked deposit vaults / strong room in Banks. 0.125%

Locked standard Burglar resistance safes. 0.15%

Locked cash book is locked cup – board. 0.15%

Large Risks :

If Sum Insured exceeds Rs.10 Lakhs in any one locations or for one client the rates may be scaled down on merits up to 25%. If probability of loss of entire property is very low, First Loss policy may be suggested.

One watchman on 24 hours, basis would merit a scaling down of rates upto 10%

Call Us On For  +91 9099062990  Fire & Burglary Insurance