Rural Micro Enterprise Insurance

Applicability

Rural Micro enterprise shield is applicable for tiny sectors, small scale industries, village industries, small traders, enterprises established in rural areas, and also enterprises coming under priority lending, whose total Sum Insured does not exceed Rs 10 lakhs.

This list will also include artisans, cottage industries and other properties financed by institution under various scheme meant for development of rural and social sector.
 

Scope of Cover

• This Policy covers loss and or damage to the insured property due to the perils listed below:
• Fire and allied perils
• Riot, Strike, Malicious Damage
• Storm, Cyclone, Flood and Inundation
• Burglary/Housebreaking

Important Exclusions

• The policy will not pay for loss or damage due to:
• War and Nuclear risk
• Normal wear and tear, gradual deterioration and depreciation
• Wilful negligence of insured or his representative
• Terrorism
• Loss of money, securities, documents, jewellery, valuables etc
• Consequential loss

Policy Extension

This policy can be extended to cover loss or damage due to any mechanical or electrical derangement or breakdown of the Insured Machinery subject to the insured opting for it and paying additional premium for that part. In the event of insured opting for it, the Machinery endorsement to be attached to the policy.
    

Sum Insured

Sum Insured comprises of value for Building, Stock (Contents) and Machineries and it should not be less than the market value. Stock alone can be covered under the policy if the insured do not opt for building. Where policy is extended to cover mechanical and electrical break down then the machinery value should represent the replacement value.
    

Premium Rate

Premium will be charged at 0.2% on the value of building (for `A¿ class construction). 0.4% on the value of stock / contents for Kutcha construction the rate will be at 0.5% on the value of the building. Burglary cover does not apply for risk covered under Kutcha construction. 

For extending electrical and mechanical break down cover additional amount at of 1% on the value of machinery will be charged.
    

Excess

5% of the claim amount subject to a minimum of Rs. 1000/- for each and every claim under fire and allied perils. For burglary the excess will be 5% of the claim amount subject to minimum of Rs. 200/- for each and every claim.