Select
Your SI should not exceed 50Cr limit

Bharat Sookshma Udyam Suraksha Policy

  • Author :
  • TATA AIG Team
  • Published on :
  • 15/04/2024
  • 2 min read

The Insurance Regulatory and Development Authority of India (IRDAI) introduced the Bharat Sookshma Udyam Suraksha policy in 2021. Tailored to empower Small and Medium Enterprises (SMEs), this policy was a transformative step towards offering SMEs in India financial protection against unanticipated adversities.

Staying informed about the particulars of Bharat Sookshma Udyam Suraksha policy wordings is crucial for SMEs. This knowledge can substantially aid SMEs in utilising the policy’s provisions to navigate uncertainties and foster business growth.

What is the Bharat Sookshma Udyam Suraksha Policy?

The Bharat Sookshma Udyam Suraksha policy provides insurance protection to Small and Medium Enterprises (SMEs) and businesses against various risks. These risks include fire, explosion, and natural calamities.

The Bharat Sookshma Udyam Suraksha includes damage to buildings, property, stock, fittings, fixtures, and plant machinery. It serves as a lifeline for SMEs, offering financial security and stability to the business during unpredictable situations.

Eligibility Criteria to Buy Bharat Sookshma Udyam Suraksha Policy

The following are the categories eligible for purchasing the Bharat Sookshma Udyam Suraksha policy:

Businesses with total insurable assets or risk value not exceeding ₹5 Crore at any single location, i.e., the Bharat Sookshma Udyam Suraksha limit is ₹5 Crore.

  • Individuals or entities owning business properties.

  • Tenants or lessees of business properties.

  • Individuals who have purchased business properties.

  • Trustees holding business properties on commission.

  • Individuals responsible for business properties and liable for insurance procurement.

Risks Covered Under Bharat Sookshma Udyam Suraksha Policy Coverage

Protection from Fire and Lightning:

The Bharat Sookshma Udyam Suraksha provides comprehensive coverage that is extended to mitigate the damages incurred from fire outbreaks and fire due to lightning strikes.

Coverage for Explosion or Implosion Incidents:

The Bharat Sookshma Udyam Suraksha policy provides financial security in the face of unforeseen explosions or implosions. This mitigates the losses resulting from such incidents and aids the businesses in their recovery efforts.

Safeguarding Against Impact Damage:

With Bharat Sookshma Udyam Suraksha, businesses are shielded from the financial consequences of damages incurred from impacts by any external physical object (E.g.., vehicles, falling trees, walls, etc.).

Riot, Strike, Malicious Damage Coverage (RSMD):

The Bharat Sookshma Udyam Suraksha policy includes provisions to mitigate losses that result from riots, strikes or malicious damage. This provides businesses with a safety net during times of civil unrest or targeted destruction.

Protection Against Storm, Tempest, Flood, Inundation (STFI):

With Bharat Sookshma Udyam Suraksha, businesses are safeguarded from the financial repercussions of storms, tempests, floods or inundations. The policy ensures that any damages or losses resulting from these natural disasters are covered.

Mitigating Losses from Missile Testing Operations:

The Bharat Sookshma Udyam Suraksha policy extends coverage to mitigate losses incurred due to missile testing operations. This provides businesses with financial assistance in the event of damage or destruction caused by such activities.

Theft Coverage within a Limited Timeframe:

In the unfortunate event of a theft following any of the insured events under the policy, coverage is extended within a specific time frame – 7 days following the incident. This ensures that businesses are protected from losses approximately caused by any of the insured events.

Protection Against Earthquake, Bushfire, Forest or Jungle Fire Damage:

With Bharat Sookshma Udyam Suraksha, businesses are provided with comprehensive coverage against damages or losses resulting from earthquakes, bushfires, forest fires or jungle fires. This mitigates the financial impact of these natural disasters on business operations.

Exclusions Under Bharat Sookshma Udyam Suraksha Policy

The Bharat Sookshma Udyam Suraksha limit of coverage does not include the following exclusions:

  • Losses resulting from deliberate, willful, or intentional acts or omissions by the insured party or anyone acting on their behalf, with their permission.

  • Loss of or damage to electronic equipment due to specific causes such as over-running, excessive pressure, short-circuiting, arcing, self-heating or electricity leakage.

  • Loss of or damage to stocks in cold storage premises caused by temperature changes.

  • Losses incurred due to spoilage resulting from the interruption or cessation of any process caused by an insured event.

  • Losses occurring when the insured premises or buildings remain unoccupied for more than 30 days without prior written approval from the insurance provider.

  • Losses resulting from war, invasion, civil war, rebellion, revolution, insurrection or nuclear fuel contamination.

  • Unless directly caused by an insured event, losses due to pollution or contamination.

  • Loss of or damage to bullion, precious stones, curios, works of art, or missing items unlinked to an identifiable insured event.

  • Losses occurring to inspired property that has been removed from premises, except under specific circumstances. For example, machinery emporaroi;y removed for repairs or stock covered under temporary removal provisions.

  • Any reduction in market value of repaired or reinstated property.

  • Loss or damage covered by an existing marine insurance policy. Except in excess of the marine policy’s limits.

  • Costs, fees, or expenses arising as a consequence of an insured event. For example, loss of income, wages, market, time, medical expenses, or any costs not explicitly covered under the policy.

  • Costs associated with preparing any claims.

Reasons to Buy a Tata AIG Bharat Sookshma Udyam Suraksha Policy

The following are some compelling reasons to buy Tata AIG Bharat Sookshma Udyam Suraksha Policy:

  • Gives space to enjoy peace of mind as it provides comprehensive asset and property protection. Right from building structures to office equipment and stocks, everything is covered under one policy. This also simplifies the insurance management for the business.

  • Safeguards the businesses against a wide array of risks and perils. These include terrorism as well as natural disasters. This ensures the resilience of the business operations in the face of unforeseen challenges.

  • Provides benefits from a wide array of in-built covers provided by the Bharat Sookshma Udyam Suraksha Policy at no extra premium. These include start-up expenses, debris removal costs, professional fees and expenses compelled by municipal regulations. This enhances the overall protection offered by the policy.

Conclusion

To conclude, Bharat Sookshma Udyam Suraksha is a crucial SME insurance policy that offers benefits beyond a regular fire insurance policy. With its comprehensive coverage, it is a pivotal introduction to SME insurance.

It is also imperative that you pick a reliable insurance provider when choosing a fire insurance policy. Tata AIG’s Bharat Sookshma Udyam Suraksha policy ensures you get an extensive list of covers and an easy claims process.

Moreover, we will always have someone to help with insurance-related queries. Be it questions about fire insurance add-ons or particulars of fire and burglary insurance, all queries are bound to be answered promptly.

Share This Article
facebooklinkedintwitter
Facebook Feeds
Recent Tweets
Share This Article
facebooklinkedintwitter
Facebook Feeds
Recent Tweets

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Related Articles

Tata AIG Also Offers Insurance for the below products

Travel Insurance

Two Wheeler Insurance

Health Insurance

Car Insurance

scrollToTop