Bharat Laghu Udyam Suraksha Policy

As a businessman, a shop or restaurant or store owner, you may feel the need to secure your property against various risks. The Bharat Laghu Udyam Suraksha Policy is a standard property insurance policy that was introduced in the month of April 2021. It was specially designed for firms who wish to cover their assets that are valued between INR 5 crores to INR 50 crores. With the policy, you can get coverage against almost all possible hazards that hover over your business. You can get coverage for physical loss or destruction to the building, the plant, the stock, the machinery, etc.

The policy has a long list of in-built features that offer a lot of coverage to the policyholder that includes:

• Any extensions or additions to the property are covered up to 15 per cent of the sum insured
• The costs incurred due to restart the business after damages occurred due to the insured events up to INR 5 lakhs
• Fee charged by the architects, consulting engineers and surveyors is covered up to 5% of the amount claimed
• Debris removal is covered up to 2% of the amount claimed.

In case you are looking for more coverage, you also have the option to include the following add-ons to your policy:

• Floater cover to bring multiple locations under one policy,
• To cover the fluctuations in the stocks, there’s a declaration policy for stocks.

To give businesspersons an insurance cover that protects their shop or factory or office property from unforeseen mishaps, the Bharat Laghu Udyam Suraksha was introduced. With a sum insured ranging from INR 5 to 50 crores, the IRDAI brought this standardised policy into being in order to cover the entrepreneurs’ building and assets.

Under the Bharat Laghu Udyam Suraksha Plan, the insurance company that you opt to take the plan from agrees to take the risk of physical damage, loss or destruction to your physical assets such as building and its structure, physical stock along with other assets or your plant or machinery, in exchange of the premium for the specific duration. The importance of this plan lies in the basic reason to opt for the plan so as to provide adequate coverage under a standardised policy.

The Bharat Laghu Udyam Suraksha policy has been designed for businessmen who want a protective shield for their business property. Check out the details below to understand who should look forward to Bharat Laghu Udyam Suraksha Policy:

• Family business owners:
  Family businesses are run for generations, and it is essential that the property is secured against any unforeseen losses and damages. Hence, the Bharat Laghu Udyam policy will ensure that the owner does not gets affected even if any mishap occurs.
• Shop-owners:
  There are various shops running across the streets and markets. Since it is a major source of livelihood for the shopkeeper, it is vital that they get it insured to keep their hard-earned money safe.
• Individuals with multiple ventures:
  There are certain businesses that have multiple ventures across different locations. Bharat Laghu Udyam Suraksha Policy ensures coverage to all the outlets and provides financial stability in the hard times of mishaps.
• High-risk businesses:
  The businesses that involve the use of fire, chemicals, etc., are considered high-risk businesses. Since these businesses are more prone to risks and hazards, it is important that they have insurance coverage. Bharat Laghu Udyam Suraksha plan provides much-needed coverage to these businesses.

Bharat Laghu Udyam Suraksha provides a wide range of coverage to keep your business property secure. These include:

• Fire and natural calamities:
  Fire can be one reason for major destruction and loss of the business. Fire could be caused due to short-circuiting, bush fire or forest fire. Apart from this, natural calamity such as earthquake and flood, can also badly affect the assets of the business and cause loss. Such losses and damages are covered under Bharat Laghu Udyam Suraksha Yojana.
• Explosion loss:
  Reported mostly in high-risk businesses. If there occurs any explosion or implosion in the business property causes loss or damage to the business, it is covered.
• Collision effect:
  Sometimes, the business property can also be damaged due to collisions like that from a falling tree, a colliding vehicle or aircraft, etc. So, such losses/damages are covered under Bharat Laghu Udyam Suraksha Policy.
• Riots and terrorism:
  Damages caused to the business property due to riots, terrorism, missile testing, etc. are covered under the policy.

When you plan to buy the Bharat Laghu Udyam Suraksha policy, it is important that you understand what is not covered. The most common exclusions are the losses that are:

• Caused due to war
• Uncovered third-party liabilities
• Caused due to an illegal occupation
• Caused because of a voluntary abandonment
• Arising as a consequence of the seepage/ discharge/ leakage of pollutants/ contaminants/ chemical or biological emission
• Caused because of fines or damages for a breach of contract
• Because of a fine, interest and/ or penalty or other assessment which is incurred by the policyholder, and which has been imposed by any government agency, or any public or civil authority.

Bharat Laghu Udyam Suraksha policy offers a sum insured between INR 5 crores and 50 crores. The sum insured is based on the reinstatement value of the fixed assets, except stocks. The insurance company will reimburse the cost of repairing in case of a claim

In the 'policy schedule' section of your policy document, you can see the sum insured entitled for each business property. Accordingly, the compensation is released. In the case of repairing or reconstructing of the damaged business property, the repair must be done within 12 months of destruction. The insurer is only entitled to release the maximum sum insured and not more than that in any case.

Some of the top insurers who provide Bharat Laghu Udyam Suraksha Policy are:

• National Insurance National Bharat Laghu Udham Suraksha Policy
• ICICI Bharat Laghu Udyam Suraksha Policy
• Tata AIG Business Guard – Bharat Laghu Udyam Suraksha
• Digit Bharat Laghu Udyam Suraksha Policy Online.

You can choose the plan that best suits your needs.

You can apply for Bharat Laghu Udyam Suraksha Policy online as well as offline, as per your preference. There are various institutions that offer this business insurance coverage. You can visit our web page and pay the premium to purchase the plan. If you want to purchase the plan via the offline method, you can contact us via phone or email. Get the policy form, fill in all the details properly and submit the form along with the required documents. Make the payment to complete the process. You will be sent a confirmation SMS and email upon successful purchase of the policy.

One need to submit below documents at the time of purchasing Bharat Laghu Udyam Suraksha policy and filing a claim:

• Proof of Identity-Insurer uses identity proof of the policyholder to maintain policyholder’s records. The documentary proofs are used to verify your identity and provide proper coverage. The acceptable identity proof documents include MSME Aadhar Card, GST Certificate, Pan card of the firm.
• Proof of Address-Address proof is one of the essential documents required at the time of purchase of policy. These documents include certificate of incorporation, copy of pan allotment letter and telephone bill.
• Proposal form duly –Applicant is required to filled in and signed the proposal form.

In case of any mishap to your insured business property, you must raise a claim. You can raise a claim online or offline with your insurance provider. The steps involved are:

• Notify us or insurance company about the incident
• Get the incident reported at the nearest police station. Call emergency services like the fire department, if needed
• Take photos and videos of the mishap
• Submit the necessary documents and also help them out in collecting information regarding the mishap
• Submit the claim form and required documents within 30 days of the incident

The insurance company will assess the whole matter and compensate you for the admissible losses/damages.