Industrial All Risks (IAR) covers accidental loss or damage to insured property at the location specified in the policy. The cover provided is against all perils other than those specifically listed under Excluded Perils. This is a single policy which covers loss or damage to property under Section–1 and loss of income or profits caused by interruption in consequence of an indemnifiable material damage loss, under Section–2.
Under Sec – 1 all personal and real property can be covered, such as, Buildings, renovation and improvements, Furniture, Fixtures and Fittings, Office Equipment, plant and machinery, Stock in Trade etc. The normal IAR Policy for a Singapore risk covers besides Fire, Perils such as Burglary, Riot, Strike and Malicious Damage, Earthquake and Volcanic Eruption, Cyclone, Flood and Accidental damage. Certain Properties such as Money, Securities, Jewelleries, work of art, road vehicles, Property in transit, stock in process etc are not covered under IAR Policy.
The Policy also excludes cover for losses due to faulty design, larceny, fraud or dishonesty, wilful negligence, war and terrorism, Nuclear and radioactive contamination and a few other perils.
Under Sec – 2 loss of profit, loss of revenue or loss of rental income can be covered. Cover can also be availed for Standing charges, Additional Cost of Working incurred in consequence of the material damage loss. Insufficient capital, restrictions imposed by Public Authorities, Loss due to Lack of Orders etc are not covered under the policy.
Note: Particulars of cover, liability and exclusion are for general information only and are not complete or exhaustive.
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