Magma HDI Commercial Add ons

Sr. No. Product name Type of Product Product Feature
1 Protection and Preservation of Property /Imminent Damage Protection Clause Add-on cover under SFSP Add-on In case of actual or imminent physical loss or damage of the type insured against by this Policy, this Policy is extended to cover the expenses incurred by  the Insured in taking reasonable and necessary actions for the temporary protection and preservation of property insured hereunder, which expenses shall be added to the physical loss or damage otherwise recoverable, if any, under the Policy and be subject to the applicable deductible without increase in the imit provisions contained in this Policy. The expenses so incurred shall be borne by the Insured and The Company proportionally to the extent of their respective interests. The Company’s portion of such expenses shall be limited to the extent that such expenses reduce loss which would otherwise be payable under this Policy.
2 Civil Authorities Clause Add-on cover under SFSP Add-on this policy extends to insure against increased cost of reconstruction occasioned by any Civil Authority’s enforcement of any ordinance or law regulating the reconstruction, repair or demolition of any property insured hereunder following an indemnifiable loss. Subject to the limit of sum insured, property which is insured under this policy of insurance is also covered against the risk of damage or estruction by civil authority during a conflagration and for the purpose of retarding the same provided that neither such conflagration nor such damage or destruction is caused or contributed to by war, invasion, revolution, rebellion, insurrection or warlike operations as more fully described in policy elsewhere.
3 Cleaning up and other costs Add-on cover under SFSP Add-on This Policy extends to cover necessary and reasonable costs and expenses incurred by the Insured following physical loss or damage to the property  hereby insured for the cleaning up or removing debris or decontaminating such damaged  property or nearby property, all in so far as owned by the Insured or for which the Insured is responsible, adjoining land, roadways, rivers, canals or other waterways affected by an insured peril, and for the dismantling and/or demolishing, shoring up, or propping portions of the property insured destroyed or damaged and/or other expenses incurred in rendering the site  suitable for immediate rebuilding or repair of the property damaged, including any expense  incurred for the removal of undamaged property thereon including undations if such removal should prove to be necessary in connection with the rebuilding or replacement aforesaid.
4 Plans, Documents and Computer Systems Records Add-on cover under SFSP Add-on this Policy extends to cover loss of data, data media and records including plans & documents as well as its regeneration, up to a limit as
specified in the Schedule subject to following.
1. The loss of data, data media and records having been caused by damage covered under Material Damage Section (All risk or Machinery Breakdown) of the policy.
2. Data / software backup being kept in fireproof safe.
3. The following special exclusions will apply:
a. Loss or damage for which the Repair Company or Maintenance Company is contractually liable.
b. Any cost for standard adjustment, rectifying functional failures and maintenance of Insured object unless necessary in connection with the repair of an Insured loss.
c. Normal wear and tear of media
d. Erroneous programming, perforating, loading or printing.
e. Consequential loss of any kind
5 Contamination and Co-mingling of stocks Add-on cover under SFSP Add-on Policy shall extend to cover loss or damage to stocks as a result of accidental contamination and/or accidental co-mingling  arising from a cause not otherwise excluded in the Policy, whilst in the Insured’s care, custody or control.
6 Customer’s Goods Clause Add-on cover under SFSP Add-on this Policy extends to cover goods belonging to the Insured’s customers, purchased but not delivered or temporarily in the custody of the Insured for alteration, repair or renovation or other purposes at the Premises insured insofar as such goods are not otherwise insured under any other insurance policy.
7 Minor Works Add-on cover under SFSP Add-on this policy is extended to cover physical loss or damage to minor alterations and/ or construction and/ or re-construction and/ or additions and/ or maintenance and/ or modifications and/ or work which is carried out on any of the property insured under this policy against insured perils. Notwithstanding other terms and conditions herein, this extension to the policy shall only pay in excess of more specific insurance if any, arranged in respect of minor works. This extension does not cover any loss or damage to property which, at the time of the happening of such loss or damage, is insured, but for the existence of this policy, by any project insurance policy or policies
8 Property in Cource of Construction / Erection Add-on cover under SFSP Add-on this policy is extended to cover physical loss or damage to minor alterations and/ or construction and/ or re-construction and/ or additions and/ or intenance and/ or modifications and/ or work which is carried out on any of the property insured under this policy against insured perils.Notwithstanding other terms and conditions herein, this extension to the policy shall only pay in excess of more specific insurance if any, arranged in respect of minor works. This extension does not cover any loss or damage to property which, at the time of the happening of such loss or damage, is insured, but for the existence of this policy, by any project insurance policy or policies.
9 Cost of Re-writing Records Clause Add-on cover under SFSP Add-on the insurance hereby extends to indemnify the insured the  cost, charges and expenses incurred in replacement or restoring documents but only for the
value of the material and not for their value to the insured, which may have been destroyed,damaged or mislaid.It is understood that the said documents may consist of deeds, views, agreements, maps, plans,records, books , letters, certificates and the like, but bearer bonds, coupons, bank currency
notes or other negotiable instruments shall deemed to be excluded from this insurance.
10 Cost of Clearing Drains Clause Add-on cover under SFSP Add-on this Policy extends to cover any expense necessarily incurred by the Insured in the clearing of drains within the surrounding premises within 500  meters of Insured premises as a consequence of property insured by this policy being destroyed or damaged by fire or by any other perils hereby insured against.
11 Accounts Receivable-Add-on cover under SFSP Add-on a)direct physical loss of or damage caused by an insured peril to nsured’s records of accounts receivable as respects the following:
(1) All sums due to insured from their customers,(2) Interest charges on any loan to offset such impaired collections pending repayment of those sums made non- collectible by loss or damage;
(3) Collection expense in excess of normal collection cost and made necessary because of loss of accounts receivable;
(4) Other expenses, when reasonably incurred by insured in reestablishing records of accounts receivable following loss in respect of this policy. For the purpose of this Policy, credit card charge records shall be deemed to represent sums due to Insured from customers, until the charge records are delivered to the credit card company
b) When there is proof that a loss of records of accounts receivable has occurred but Insured cannot accurately establish the total amount of accounts receivable outstanding as of the date of loss, the amount of recovery shall be computed as follows:
(1) The monthly average of accounts receivable during the last available twelve (12) months, together with collection expenses in excess of normal collection costs and made necessary because of loss or damage, and reasonable expenses incurred in reestablishing records of accounts receivable following loss, shall be adjusted in accordance with the percentage increase or decrease in the twelve (12) months average of monthly gross revenues which may have occurred in the interim.
(2) The monthly amount of accounts receivable as established above shall be further adjusted in accordance with any demonstrable variance from the average for the particular month in which the loss occurred. Consideration will also be given to the normal fluctuations in the amount of accounts receivable within the fiscal month involved.
c) Company will pay no more than the applicable sub-limit of insurance as specified in the
schedule.
There shall be deducted from the total amounts of account receivable, however established, the amount of accounts evidenced by records not lost or damaged, or otherwise established or collected by Insured, and an amount to allow for probable bad debts which Insured normally  would have been unable to collect and for the normal collection costs incurred due to accounts receivable
12 Additional Custom Duty Clause-Add-on cover under SFSP Add-on this section extends to indemnify the insured in respect of any additional / extra Import / Customs duties in excess of % of custom duty already included inthe sum insured, incurred in the event of a claim for which indemnity is provided by this sectionof the policy or which would have been, but for an application of Insured’s Retained Liability,indemnified.The Indemnity for such Additional Custom Duty will stand reduced after occurrence of the claim
unless reinstated by payment of an additional premium prescribed by The Company.
13 Undamaged Foundations Add-on cover under SFSP Add-on foundation of the property insured which prove to be unusable following the loss or damage as covered under the Policy at the insured premises shall
be considered part of the property damaged.
14 Green Clause Add-on cover under SFSP Add-on insurance by this Policy extends to cover additional costs necessarily and reasonably incurred with The Company’s consent in rebuilding or repairing Buildings at The Premises in a manner that aims to reduce potential harm to the environment by improving energy efficiency following Damage as insured by this Section. The Company will not indemnify under this Clause in respect of
1. the additional cost of complying with any Indian legislation, Act of Parliament, or byelaws
of any public authority;
2. any additional costs for work already planned to be carried out prior to the Damage;
3. any Buildings or portions of Buildings which are Unoccupied;
4. if the Insured elect not to rebuild or repair the Buildings
15 Landscaping Cover Add-on cover under SFSP Add-on damages to growing plants, shrubs, garden plots and lawns (including rock work and ornamentation and edging pertaining thereto) on locations insured by this Policy and damaged by the operation of any peril not  excluded in the Policy. The policy shall reimburse cost of reinstatement of damaged property
including expenses necessarily incurred in cleaning, clearing and/or repairing drains, gutters, sewers and the like surrounding and within Buildings.
16 Lawns, Plants, Shrubs or Trees Add-on cover under SFSP Add-on direct physical loss of or damage,in respect of the Policy, to lawns, plants, shrubs or trees occurring at such premises as described in the Schedule. This coverage does not apply to improvements at a golf course unless specifically mentioned in the Schedule. This coverage does not apply to loss or damage caused by or resulting from: windstorm and hail; vehicle damage; weight of snow, ice or sleet; and water damage.
17 Properties under Consignment, Care, Custody and Control / Hire Purchase or Lease Agreement (SFSP) Add-on certain items of the Property may be the subject of hire purchase lease or other agreements and the interest of the other parties to these agreements is noted in this Insurance, provided the nature and extent of such interest is disclosed in the event  of loss, destruction or damage. These may also include all real and personal property of every kind and description belonging to  the Insured or to others (including but not limited to goods under consignment, held in trust or on lease or paid for awaiting delivery) for which the Insured may be held liable for loss or damage while in their care, custody or control.
18 Inadvertent Omissions Add-on cover under SFSP Add-on Insured having notified The Company of their intentionto insure all property in which they are interested and it being their belief that all such property is
insured, if hereinafter any such property shall be found to have been inadvertently omitted, The Company will deem it to be insured within the terms of the Policy, up to the limit of indemnity specified in the schedule, provided that such property is declared to The Company immediately upon discovery of  omission. No refund of premium would be allowed under this cover.
19 Inland Transit Add-on cover under SFSP Add-on insurance by this Policy extends to cover Plants & Machinery and spares hereby insured but excluding stock, finished goods and raw materials, whilst in transit within the territorial limits of India subject to
· Damage caused as a result of ‘All Risks’ as covered under the policy and forming part of the property insured, unless otherwise specified in the schedule,
· Provided that the insured property is suitably packed and/ or prepared for transit which shall also be deemed to include stowage
· Per transit limit – as mentioned in the Schedule
· Provided that it is not indemnifiable under a more specific policy
· Deductible – As mentioned in the schedule  Any consequential loss arising out of loss covered under this clause is excluded
20 Internal Decorations Fixtures and Fittings Add-on cover under SFSP Add-on In the event of insured partial loss or damage to internal decoration, fixtures and fittings which follows a consistent design theme throughout the property
affected, this policy shall insure the replacement of the entire internal decoration, fixtures and  fittings design, including that portion of the internal ecoration which did not suffer insured loss or damage, provide the repair or replacement of the damaged portion of the internal decoration,fixtures and fittings is impossible due to the inability of the Insured to source the authentic  materials necessary to complete such repair or replacement.
21 Archives Add-on cover under SFSP Add-on Policy is extended to cover reasonable costs incurred in the reconstruction of archives, record account documents, plans, computer programs and data, subject to back up copies / records being maintained in a safe  and secure place. The Company shall, however, not be liable for any costs arising from false programming, punching, labeling or inserting, inadvertent canceling of information or discarding of data media, and from loss of information caused by magnetic fields.
22 Plan & Specification Clause Add-on cover under SFSP Add-on Insurance by this Policy extends to indemnify the Insured  in this respect of the cost of re-writing or re-drawing plans or specifications of the property insured  under this Policy when such plans or specification are lost or damaged by any cause not excluded by this Policy and the insured needs to have them re-drawn or re-written.
23 Water Damage Clause Add-on cover under SFSP Add-on 1. Accidental discharge, leakage, or overflow of water or steam from plumbing, septic tanks and cylinders, stand pipes for fire hose, industrial and domestic appliances, refrigerating  system, air-conditioning system and rain (or snow) admitted through defective roof, headers spouting or by open or defective windows, show windows, picture windows, doors, transoms, ventilators or skylights;
2. Breakage of/or leakage from street water supply, mains or fire hydrants. provided that:
a) The Insured undertakes to exercise all ordinary and reasonable precautions for the maintenance and safety of the property; b) All conditions of this policy shall apply (except insofar as they maybe hereby expressly varied) and that any reference therein to loss or damage by fire shall be deemed to apply to loss or damage as aforesaid.
24 Building Ordinance, Demolition and Increased Cost of Construction Add-on cover under SFSP Add-on a) Company will pay for the additional increased costs incurred by the Insured, due to any repairs or reconstruction of a building consequent to a direct physical loss of or damage to such covered building (or structure) but not machinery and equipment, occurring at a premises described in the Schedule caused by an insured peril, resulting from the enforcement of any law or ordinance regulating the construction, demolition, repair, or use of such building (or structure). These additional increased costs are:
(1) The demolishing of undamaged parts of a building (or structure) including the cost of clearing the site;
(2) The loss in value of the undamaged portion of a building (or structure) that bears to the value of the entire building (or structure) prior to loss or damage and subject to the same method of recovery which applies to the damaged portion of such building (or structure);
(3) The repair, reconstruction or remodeling of damaged and undamaged portions of a building (or structure) whether or not demolition is required at the same described premises or at another site, and limited to the costs that would have been incurred in order to comply with the minimum requirements of the law or ordinance regulating the repair or reconstruction of the damaged building (or structure) at the same described premises. However, we shall not be liable for any increased cost of construction unless the damaged building (or structure) is actually rebuilt or replaced; and
(4) Company will pay no more than the applicable sub-limit of insurance.The demolition of the undamaged building (or structure) as a result of enforcement of any law or ordinance regulating such demolition, will be considered a damaged building (or structure); the value of which is subject to the same method of recovery provided for a damaged building (or structure) and to the applicable limit of liability as per the schedule for that described premises.
b) Company will not pay for the following under this coverage:
(1) Any cost that is incurred as a result of enforcement of any law or ordinance regulating any form of contamination.
(2) Any cost to install improvements or modifications to machinery or equipment, when either is required or performed to comply with the mandated work place safety and environmental regulations.
25 Increased costs of Construction and Demolition Clause Add-on cover under SFSP Add-on Loss occasioned by the enforcement of any laws(s) or ordinance(s) regulating the construction, repair or use of building(s) or structure(s) and in force at the time such loss occurs which requires the demolition of any portion of the building(s) or structure(s) which have not suffered damage from the same loss occurrence under this Policy (all locations).
· The cost incurred in actually rebuilding both the damaged and demolished portions of  the building(s) or structure(s) with materials and in a manner to fully satisfy such  ordinance(s) or law(s). The total liability under this clause shall not exceed actual expenditure incurred in demolishing the undamaged portion of the building(s) or structure(s) involved plus the lesser of the following:
1. The actual expenditure incurred not including the cost of land in rebuilding on another  site, or
2. The cost of rebuilding on the same site. The Company shall not be liable for any cost of demolition or increased cost of construction of property necessitated by any law or ordinance regulating any form of pollution or contamination.The indemnity provided herein shall be subject to the limit of indemnity as specified in The Schedule.
26 Cost of Demolition and Debris Removal Add-on Loss occasioned by the enforcement of any laws(s) or ordinance(s) regulating the construction,repair or use of building(s) or structure(s) and in force at the time such loss occurs which requires the demolition of any portion of the building(s) or structure(s) which have not suffered damage from the same loss occurrence under this Policy (all locations).
27 Catalyst and Consumable (including lining and refractory) interest in process Add-on cover under SFS Add-on loss of or damage to catalysts and consumable materials including lining and refractory in the course of process are covered to a maximum limit as
specified in the Schedule. This extension also covers loss and/or damage of catalysts due to its sudden poisoning /deactivation by a cause not excluded under the policy. Basis of Indemnity – Actual Cash value (i.e. the residual value)
28 Property under Care Custody and Control/Non Owned Assets Add-on cover under SFSP Add-on Assets belonging to others (including but not limited to goods under consignment, held in trust or on lease or paid for awaiting delivery) for which the Insured may be held liable for loss or damage while in their care, custody or control at the Premises insured insofar as such assets are not otherwise
insured under any other insurance policy.
29 Obsolete Spare Parts Clause Add-on cover under SFSP Add-on  in the event of spares currently insured hereunder and represented within the total Sum Insured under the Policy, becoming obsolete following an
indemnifiable loss to the Plant & Machinery to which they belong, such spare parts shall also be deemed a constructive total loss provided always that such parts cannot be used as spares for  any other units within the premises of the Insured. The Company shall retain salvage rights over such parts
30 Property not on The Insured Premises / Offsite Premises Add-on cover under SFSP Add-on  Policy extends to cover property (Machineries /Equipments and Stocks) of the insured temporarily stored in unspecified locations outside the insured premises subject to these properties being part of the declared Sum Insured. This cover is subject to Territorial scope as specified in the policy
31 Waiver of Underinsurance Add-on cover under SFSP Add-on  if in the event of loss or damage, it is found that the sum insured is less than the amount required to be insured, then the amount recoverable by the
insured under this section shall be reduced in such proportion as the sum insured bears to the amount required to be insured. Provided, however, if the said sum insured in respect of such item(s) of the schedule shall not be less than 85% of the value of the item(s) thereat, this condition shall be of no purpose and effect.
32 Precautionary Measures Add-on cover under SFSP Add-on Policy covers reasonable and necessary cost as incurred by the Insured, because of precautionary measures the Insured is obliged to take for the
prevention of danger with regard to the public security, if insured property is destroyed or damaged by any perils hereby insured against.
33 Preservation of Property Add-on cover under SFSP Add-on Policy covers reasonable and necessary cost as incurred by the Insured, because of precautionary measures the Insured is obliged to take for the
prevention of danger with regard to the public security, if insured property is destroyed or damaged by any perils hereby insured against.
34 Decontamination Expenses and Cost of Clean Up Add-on cover under SFSP Add-on  if insured property is contaminated as a direct result of physical loss or damage by a peril insured against under this Policy and there is in force at the time of such physical loss or damage any law or ordinance regulating contamination, including but not limited to the presence of pollution or hazardous material, then this Policy is extended to cover, as a direct result of enforcement of such law or ordinance, the increased cost of decontamination and/or removal of such contaminated insured property in a manner to satisfy such law or ordinance. This additional coverage applies only to that part of insured property so
contaminated as a direct result of insured physical loss or damage.The Company shall not be liable for the costs required for removing contaminated uninsured property nor the contaminant therein or thereon, whether or not the contamination results from an insured event.The Company shall not be liable under this Extension for more than the sub-limit as mentioned in the schedule in respect of any one Occurrence, which shall be part of and not in addition to the policy limit
35 Land And Water Contaminant Cleanup, Removal and Disposal Add-on cover under SFSP Add-on  this Policy extends to cover the reasonable and necessary cost for the cleanup, removal and disposal of Contaminant(s) or pollutants from uninsured
property consisting of land, water or any other substance in or on land at the Insured Location if the release, discharge or dispersal of Contaminant(s) is a direct result of insured physical loss or damage to insured property.This Policy does not cover the cost to cleanup, remove and dispose of Contaminant(s) or
pollutants from such property:1) at any location insured for Personal Property only. 2) at any property insured under AUTOMATIC COVERAGE or ERRORS AND OMISSIONS orMiscellaneous Unnamed Location coverage provided by this Policy.3) when the Insured fails to give written notice of loss to The Company within 90 days afterinception of the loss.
36 Deferred payments Add-on cover under SFSP Add-on  Policy covers insured physical loss or damage to Personal Property of the insured sold by the Insured under a conditional sale or trust agreement or any installment or deferred payment plan and after such property has been delivered to the buyer. Coverage is limited to the unpaid balance for such property.
In the event of loss to property sold under deferred payment plans, the Insured will use all reasonable efforts, including legal action, if necessary, to effect collection of outstanding amounts due or to regain possession of the property. There is no liability under this Policy for loss:
1) pertaining to products recalled including, but not limited to, the costs to recall, test or to advertise such recall by the Insured.
2) from theft or conversion by the buyer of the property after the buyer has taken possession of such property.
3) to the extent the buyer continues payments.
4) not within the TERRITORY of this policy
37 Destruction of Sound Property Clause Add-on cover under SFSP Add-on  Policy extends to cover the cost of destruction and subsequent replacement of undamaged property or undamaged portions of property, if such destruction is solely necessary in order to carry out repairs or reinstatement of the property insured by this Policy and for which The Company has admitted liability. Provided that this shall not include any work necessary to undamaged property to comply with any act, regulation or by-law of any local or Public Authority.
For the purpose of this clause, “undamaged” shall mean not damaged physically and directly by any event or perils not otherwise excluded by this Policy.
38 Errors and Omissions Add-on cover under SFSP Add-on  direct physical loss of or damage caused by a loss to property on the insured location which is not payable under this Policy because of an unintentional omission or error by the Insured, at the time of policy inception, in the description or inclusion of any property to declare the same as an insured property; but only to the extent The Company would have provided coverage had the unintentional omission or error not been made.Insured must report any unintentional omission or error as soon as possible.This coverage does not apply if there is coverage available under any of the provisions,endorsements, add-on covers of this Policy.
39 Exhibition, Exposition, Fair or Trade Show Add-on cover under SFSP Add-on for direct physical loss of or damage caused by a peril mentioned below to property insured situated on the premises of any exhibition, exposition, fair or trade show unless such property is otherwise more specifically insured. The scope of coverage will be within the Territorial scope of this policy. Perils Covered – Insured Perils under the policy unless otherwise specifically mentioned in The Schedule