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Standard Fire and Special Perils Policy

  • Author :
  • TATA AIG Team
  • Published on :
  • 05/02/2024
  • 2 min read

Unforeseen circumstances, such as calamities like fire, explosions, floods, storms, etc., can cause substantial financial loss to individuals and businesses. However, with standard fire and special policy coverage, policyholders can safeguard their assets against damage or loss. The policy is designed for both individual and commercial entities like factories, shops, etc.

Further, the fire and special peril policy offers coverage to buildings, stocks, fixtures, fitting, plant and machinery, etc., as per the policy conditions. In this blog, we will learn in detail the standard fire and special perils policy.

What is the Standard Fire and Special Perils Policy?

Standard fire and special perils is a type of fire insurance policy which offers coverage to policyholders for loss or damage for covered perils. It is the ideal business insurance plan for corporations or SMEs who want to protect their business against unforeseen circumstances that can cause financial repercussions.

Why the Need for Fire and Special Perils Policy?

Standard fire and special perils policy is essential for individuals and business owners as it offers financial security. Below are some of the reasons to invest in fire and special perils policy.

Peace of Mind - The very reason for investing in fire insurance perils policy is to get peace of mind. Policyholders will be rest assured that their property and business are protected against fire and specific perils as mentioned in the policy terms and conditions.

Business Continuity - Incidents like fire, lightning, etc., can cause colossal disruption which can affect the business operations. But with fire insurance and special perils coverage, businesses will get financial help to start swift recovery and continuity of day-to-day operations.

Financial Protection - Further, with the fire and special peril policy, policyholders will get compensation as per the policy condition, which helps in rebuilding, restoring and replacing the damaged property. The policyholder doesn't need to spend out of their pocket.

Risk Management - Lastly, similar to any other insurance this, too, is a risk management technique undertaken by individuals and businesses. By investing in policy, policyholders can focus entirely on their business and not worry about the financial implications caused by unforeseen situations.

Types of Standard Fire and Special Perils Policy

The policy is classified into different types based on their usage.

Valued Policy - Under this policy type, the value of the insured asset and property is decided at the time of the policy purchase. Whenever an unforeseen circumstance happens, the policyholder can claim the predetermined amount.

Valuable Policy - Another type of fire and special perils is valuable policy, where the claim amount is decided as per the current market value at the time of raising the claim.

Specific Policy - Further, another type of standard fire and special perils policy is the specific policy where the insurance policies cover up to the specific sum for loss and damages as per the policy condition.

Floating Policy - This kind of insurance policy is beneficial for individuals or businesses whose goods are at different locations. However, the goods should belong to the policyholder.

Comprehensive Policy - This is the complete policy package that protects against various risks such as explosions, labour disturbances and more. The policy also has many added features for complete protection.

Who Needs Fire and Special Perils Policy?

The standard fire and special perils policy are eligible for:

  • Property or Building Owners

  • Hospitals, Clinics and other Healthcare facilities.

  • Shopkeepers

  • Educational Institutions

  • Financial Institutions

  • Manufacturing Companies or Factories

  • Transporters

  • Godown Owners

What is Included Under Standard Fire and Special Perils Policy Coverage?

The common inclusions under the standard fire and perils policy coverage for damage and loss due to:

  • Fire

  • Lightning

  • Explosion / Implosion

  • Aircraft Damage

  • Riot, Strike, Malicious Damages (RSMD)

  • Storm, Tempest, Cyclone, Typhoon, Hurricane, Tornado, flood, inundation (STFI)

  • Impact damage by any rail/ road/ vehicle/ animal (other than own)

  • Subsidence, Landslide and Rock slide

  • Missile Testing operations

  • Bush Fire

  • Bursting or overflowing of Water Tanks, Apparatus and Pipes

  • Leakage from Automatic Sprinkler Installations

**Add-on Covers Under the Standard Fire and Special Perils Policy Coverage

Below are the add-ons that come under the fire and special perils policy:

  • Architects, Surveyors and Consulting Engineers fees (in excess of 3% of claim amount)

  • Debris Removal (in excess of 1% of claim amount)

  • Deterioration of Stock in Cold Storage

  • Forest Fire

  • Impact Damage by insured's vehicles, etc.

  • Spontaneous combustion

  • Omission to ensure Additions, Alterations or Extensions

  • Earthquake (Fire and Shock)

  • Spoilage Material Damage Cover

  • Leakage and Contamination Cover

  • Loss of Rent

  • Additional expenses on rent for Alternative Accommodation

  • Start-Up Expenses

  • Terrorism Cover

What is Excluded Under the Standard Fire and Special Perils Policy?

The common exclusions under the standard fire and special perils policy are:

  1. Special loss, damage, and destruction due to:
  • War

  • Invasion

  • Act of foreign enemy hostilities

  • War like operations

  • Civil war

  • Insurrection or military or usurped power

  • Military rising

  • Rebellion activity

  • Revolution

  1. Loss or damage due to:
  • Nuclear risks
  1. Damage, loss and destruction due to:
  • Pollution or contamination
  1. Destruction, loss and damage due to:
  • Bullion or unset precious stones

  • Works of art

  • Plans drawing, securities, etc

  1. Cold storage stocks damage or loss due to:
  • Change of temperature.
  1. Electrical machinery loss, destruction and damage due to:
  • Over-running, excessive pressure

  • Arching

  • Short-circuiting

  • Self-heating or leakage of electricity

  1. Expenses necessarily incurred on:

Architects, Surveyors and Consulting Engineer's Fees and

  • Debris Removal by the Insured following a loss, destruction or damage to the property insured by an insured peril in excess of 3% and 1% of the claim amount, respectively.
  1. Consequential or indirect loss or damage due to:
  • Loss of earnings

  • Loss by delay

  • Loss of market

  1. Loss or damage by spoilage resulting from:
  • Retardation or interruption or cessation of any process.

  • The operation caused by the operation of any of the perils covered.

  1. Loss or damage in consequence directly or indirectly with:
  • Earthquake

  • Volcanic eruption

  • Other convulsions of nature

  1. Loss or damage to property insured if
  • Removed to any building or place other than in which it is herein stated to be insured, except machinery and equipment temporarily removed for repairs, cleaning, renovation or other similar purposes for a period not exceeding 60 days

How to Initiate Standard Fire and Special Perils Claim Procedure?

Below are the steps to initiate the claim procedure in case of standard fire and special perils policy.

  • After the incident, inform the insurance provider immediately by visiting their website or policy issuing office.

  • After receiving a claim request, the insurance company will send a representative to assess the damage or loss and the cause of the incident.

  • If the damage or loss is due to the condition listed in policy terms, then the insurance company representative will ask for an estimated amount of loss and damage.

  • The representative will need assistance from policyholders, too, in assessing the situation. Provide all the necessary documents to them if needed.

  • Submit all the relevant documents to the representative; after analysing all the documents, the insurance provider will release the claim amount.

Documents Required For Claim Process Under Standard Fire and Special Perils

Depending on the cause of damage or loss, the documents are needed by the insurance company.

In case of fire or explosion:

  • Duly filled and signed claim form.

  • Original insurance policy copy.

  • Police authorities gave the first information report.

  • Fire brigade report

  • Evidence photographs or video of damaged property

  • For insured products and machinery, copies of invoices

In case of cyclones, earthquakes, storms, etc:

  • Duly filled and signed claim form.

  • Original insurance policy copy.

  • Newspaper cutting of incidents.

  • Meteorological Report

In case of riot, strike, malicious damage and terrorism:

  • Duly filled and signed claim form.

  • Original insurance policy copy.

  • Fire Brigade Report

  • Police authorities gave the first information report.

  • Photographs or video of damaged property

  • Newspaper cutting to verify the occurrence of incidents.


Individuals need to consider investing in business insurance like fire and burglary insurance or different types of fire insurance policies or fire and special perils, etc., to protect their assets. This insurance policy will not only offer financial coverage against various risks but also provide peace of mind.

Tata AIG is a reputed insurance company that offers various insurance plans such as fire insurance and special perils policy. The unique characteristics of fire insurance and special perils offered by us include an easy claim procedure, an extensive list of inclusions, etc. To buy the standard fire and special perils policy, visit our website.


What is a standard fire insurance policy?

It is a type of insurance policy that covers loss or damage caused due to fire. Under this policy, the incident of fire that happens accidentally or unintentionally will be covered.

How many perils are there in standard fire insurance policies?

As per the standard fire insurance policies, there are 12 perils. Some of these include fire, aircraft damage, impact damage, riot or strike, explosion and implosions, etc.

What are standard perils?

A peril is an incident or event that has caused damage to the insured property. The standard fire insurance perils include lightning, vandalism and fire.

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Disclaimer / TnC

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

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