Property Insurance

Burglary insurance involves forceful and illegal entry into the business premises for the purpose of stealing. “Forceful entry” is the prerequisite for burglary. Burglary insurance is not only for the goods owned by the business but also for the goods the company is responsible for like those held in his trust.

The main burglary insurance policy available under commercial line is burglary business premises insurance policy which insures the stock-in-trade and other goods.

Types of burglary & housebreaking policies:

The policy can be issued on the basis of full value, first loss or declaration based on the nature of the goods and business of insured.

1. First loss policy: In first loss basis policies, the maximum likely loss on one occasion is assessed specified as percentage say 10% or 15% of full value and insured.
2. Full Value policy: In full value policies, the goods are insured for their full value. This includes the original cost price and overheads.
3. Declaration policy: In declaration policies the maximum value of the stocks is estimated in the beginning. The insurance is based on this amount and premium is charged on 75% of this amount on provisional basis. Later thestock is valued and declared at the end of every month. At the termination of the policy period, the average stock during the year is calculated and the actual premium payable is arrived at. The difference between the premium payable and premium paid is then adjusted (paid or refunded) accordingly.

Scope of cover

• property lost by theft which only accompanied by actual forcible and violent breaking into or out of a building;
• any damage to property insured or to premises falling to be bear by insured and which shall be due to any theft or attempt theft;

Exclusions

Some of the basic exclusions are loss:

1. Loss or damage in which the employee of the insured or any other person, who can lawfully be present on the premises, is involved.
2. during the progress of or following upon fire or explosion accidents;
3. Loss or damage to deeds, bonds treasury notes, cash, medals, securities for money, cheques, unless they are otherwise included in the policy;