When you spend money purchasing content and precious things for your business or house, it becomes important to keep them safe. As the crime rate is increasing the chances of your property or content being stolen rises higher and as a result of that, you might face a huge financial problem. To give you relief from the huge financial loss due to burglary and theft, Burglary Insurance Policy is a messiah that not only keeps your insured possessions protected but also unburdens you from the anxiety economical trouble.
A burglary insurance policy is a type of policy that provides you coverage for the financial loss or damage which you may suffer due to burglary, theft, or attempted burglary into your house or business premises. Burglary is termed as when someone enters into your property forcefully with the intention of stealing and violence in an unlawful manner. Burglary insurance promises you to keep your possessions safe and secure under the aforesaid circumstances. This insurance is often referred to as crime insurance too. For business organizations and even for homes, it is an important insurance plan like other policies.
Key Features of Burglary Insurance Policy
Burglary Insurance Policy assures you to keep your insured property secured with it. The key highlights of this policy are below-mentioned.
Wide range of eligibility – This insurance can be bought by the homeowners, tenants, business owners, and even by the business organizations to keep their property safe against burglary.
Extensive coverage – Burglary insurance covers money in transit, business premises, cash-in-safe, jewelry, and other valuables.
Coverage for fiscal damage and property damage – Burglary insurance offers protection for fiscal damage as well as property damage too against the financial loss arising out of a forceful entry by an intruder into your insured property and also for the forceful theft or the theft of property within the office or house premises.
Protection against theft and robbery – An insured can also safeguard his property against theft and robbery under this policy if that protection is available with the company.
Multiple options – There is a wide range of types of burglary insurance. You can choose from those according to your convenience.
Additional benefits – You can extend your burglary policy by adding different add-ons that are available with the insurer according to your requirements.
Cover for all business properties – Whether you are willing to safeguard your family business, office space rented store or chains of stores, most of the burglary insurances are suitable for all types of business, no matter how small or big it is.
Flexibility – This insurance policy is flexible enough and the coverage can be adjusted according to the requirements of the insured.
Smooth and easy – Just like all other insurance policies introduced by IRDAI, the features of the burglary insurance policy are customer-friendly and easy to avail of. The Policy Wordings are written in lucid and placid language.
Value for Money – Burglary insurance vows to protect your property from losses or damages against burglary and theft. So the amount of money you pay as the premium for this insurance is totally worthy.
Who Can Avail Burglary Insurance Policy?
As burglaries are unpredictable and may cause you huge financial losses, most of the insurance companies keep their eligibility criteria for availing this policy wide, open and feasible. Let’s look at below and find out who is eligible for this policy.
Homeowners – If you own a house, no matter how big or small it is, you can avail of this policy as the house is one of the most valuable possessions.
Renters – Even if you own a rented property, this policy is open for you, renters too.
Small Business Owners – If you run a small independent business that might be a small general store or a small boutique or whatever, you are eligible to avail of this policy.
Medium Business Owners – If you run a chain of general stores, restaurants, or a medium-sized enterprise;the burglary insurance policy is also suited for medium-sized business owners to cover any damages and losses that could be caused due to any burglary or theft.
Large Enterprises – If you own multiple properties for the large operations of your business, a burglary insurance policy becomes important for your business to lessen the business risks. So you are always welcome to avail of this insurance policy.
Common Types of Burglary Insurance Policy
Most of the insurance companies in India offer a wide range of burglary insurance to keep the policy client-friendly so that they can choose a particular one according to their convenience. The below-mentioned are some common types of burglary insurance policies.
Stock Declaration Policy – There are some businesses that cannot estimate the exact value of their stock in trade. For this type of business owner Stock Declaration Policy is an ideal one that takes the highest value of the stock as the sum insured so that the maximum damages or loss can be sufficiently reimbursed.
First Loss Policy – Under this policy, a portion of the stock is insured that is more exposed to the risk of burglary. This type of policy becomes vital when the total loss cannot be plausibly estimated.
Full Value Policy – This type of burglary policy covers the asset for its full value so that in case of loss or damage to the product, the full value can be claimed.
Money in Transit Insurance – This policy is very relevant for those businesses where the movement of physical cash is frequently involved as it offers coverage against theft or burglary to the money while that is in transit.
Business Premises Insurance – This policy compensates for the loss or damages to the insured property due to burglary or theft within the business premise.
Dwelling Insurance – This type of burglary insurance policy provides protection to the residential house against the risks of theft or burglary.
Jewellery and Valuable Policy – If you own precious jewellery, valuable assets, works of art, and other precious possession, this policy will safeguard all of your valuable possessions from burglary and theft.
Cash in Safe Policy – If you keep your cash in the safe or in a locker in your house or business premises and still after that it gets stolen or theft, this policy compensates for the lost or damaged insured items.
What Are The Inclusions of The Burglary Insurance Policy?
A burglary insurance policy allows you to ensure a wide range of properties within your business and home premises. It provides multiple coverages to keep your possessions safe and secure against the risks of burglary and theft. Here are the mentions of the inclusions under this policy.
Coverage against forceful and unlawful entry – If someone enters your home or business premises forcefully breaking the law with the intention of stealing and violence, this insurance policy compensates for the financial loss that you suffer due to damaged or loss of insured possession(s).
Protection against theft and burglary – If the insured asset within your home or business premises is theft or burgled the insurer will take care of your financial loss.
Cover for cash in safe – If you keep your cash in a safe or in a locker securely and still after that it is theft or burgled, this policy cover that financial loss too. In this case, there remain few clauses that may vary from company to company.
Shield for jewellery and other valuable assets – Burglary insurance also offers coverage for precious jewellery, gemstones, valuable assets, works of art, and few other expensive possessions in case those are theft or burgled.
Protection for money in transit – If your physical money while it is in transit gets theft or burgled this policy will compensate for that loss too.
Additional benefits that are available under this policy are mentioned as follows.
Death – The policy will compensate the Sum Insured if the Insured and/or insured’s family and/or Employee(s) of the Insured die solely and directly due to an incident of burglary or housebreaking occurring during the Period of Insurance.
Permanent total disablement – The insurer will pay the Sum Insured if the Insured and/or insured’s family and/or Employee(s) of the Insured suffer Permanent Total Disablement solely and directly due to an accident of burglary or housebreaking which occurs during the Period of Insurance.
Personal effects – This policy also covers loss of clothing and personal effects (excluding money), which occurred due to an insured event up to the amount of INR 50,000/-.
Seasonal or festive increase – The Sum Insured for Stock is increased by ten percent (10%) or INR 1,000,000, whichever is lesser, during New Year and Diwali.
Types of Personal and Business Property and Assets Covered Under Burglary Insurance Policy
Below-mentioned are the types of personal properties that can be covered under this policy.
Individual Apartment – This policy can be availed by those who live in independent flats that are either part of housing societies or standalone buildings. The same can be either your own property or rented property.
Independent Building – It might be possible that you and your extended family live in a standalone building, where you might be the owner or the renter in the entire building. In that case, you can choose to cover the entire building under this policy if this benefit is available with the insurer.
Independent Villa or House – If you own or have rented an independent villa or house, burglary insurance coverage is vital to protect your villa and its contents from the potential risk of a burglary.
Types of business properties that are covered under this policy are as follows.
Mobile auto-mobile and other electronics shops.
Grocery and general stationery stores
Offices and educational spaces
Business of Home repairs and house-help services like carpentry, plumbing, engineering workshops, motor garages and etc.
Personal home, lifestyle, and fitness including malls, spa, gym and many more
Food and eatery shops ranging from café, restaurants, the chain of restaurants, bakery to food trucks.
Centers that provide healthcare services like hospitals, medicine shops, surgical stores, clinics, diagnostic centers, and so on.
Apart from the aforesaid businesses, burglary insurance policy usually covers all types of businesses, be it small, medium, or big. The types of eligible business property for coverage may vary from company to company.
Types of assets that are covered under a burglary insurance policy are as follows.
Cash and valuables
Money in transit
Cash stored in safe or locker
Stock in trade
Plants and equipment used in the factory or business premises
Precious watches and other valuable possessions.
General Exclusions of Burglary Insurance Policy
There are some exclusions that are not covered under this policy and the important mentions are as follows.
Willful Damage – If you suffer any loss deliberately or intentionally, the policy does not bear that loss.
Damage by the employee – If any damage is done by the family members or business employees or staff that loss is not covered under this policy.
Bills or account – Financial loss or damage involving promissory notes, bonds, bills, deeds, cash, treasury, cheques, stamp collections, banknotes, securities of money, book of accounts, manuscript, and a few more are not covered by this policy if not special coverage is taken.
War – If due to war, war-like operations, or invasions, you suffer loss, the company does not take responsibility for that.
Strike, public unrest – The company does not compensate for the loss or damage that happened due to strikes, riots, acts of terrorism, or any other public commotions.
Nuclear activities – Any damage caused due to radioactive rays or nuclear activities is not covered under this policy.
Missing property – In case of property is missing or has been mislaid will not be covered by the policy.
Action of Government – Temporary or permanent dispossession, confiscation, commandeering, requisition, or destruction by the order of the government or any lawful authority will not be covered.
Removal of contents – Loss or damage to any insured property removed from your home or the business premises to any other place is not included under the policy coverage.
Unattended premise – Burglary or theft when the premises are left unattended or when the premise was not completely locked or proper security is not maintained falls under the exclusion of this insurance policy.
Natural calamities – Any loss or damage suffered during natural calamities like flood, earthquake, typhoon, tornado, storm, and some others are not protected by this policy.
General and Special Conditions of Burglary Insurance Policy
The general conditions of this policy are as follows.
Notices and Alterations To The Policy – If you want to communicate with the company, you have to do it in writing and need to address it to the nearest office of the company.
Reasonable Care – The insured must take all the relevant steps to protect his/her insured property.
Basis of the sum insured – The Sum Insured for this policy will be fixed on current market prices for stocks. For other items, it can be fixed on the basis of either Market Value or Reinstatement Value.
Mid-term increase in sum insured – In the event of an increase in the Sum Insured being agreed to, the Company shall charge on such increased sum an additional provisional premium on a basis proportionate to the unexpired period of the policy
Contribution – If during any loss or damage covered by this Policy there is any other existing insurance covering the same, the company will not be liable to pay or contribute more than its rateable proportion of any loss or damage.
Geographical limits – The coverage is provided by the policy only within the specified geographical limits of the company as mentioned in the Policy Document.
The special conditions of this policy are as follows.
Reinstatement – Immediately after the loss or damage, the total Sum Insured and the Sum Insured upon the various descriptions of property that have been lost or damaged will be reduced by the amount of loss or damage and such reduced sums insured will be the limit of the Company’s liability in respect of any further loss or damage occurring during the current period of insurance, unless the Company consents, upon payment of additional premium to reinstate the full Sum Insured.
Floater condition – In consideration of premium charged, the sum Insured is available for anyone, more, or all locations as specified in the policy in respect of the movable property. Any change in the address of the locations should be declared to the company immediately.
The onus of proof – In any action where the insurer alleges that by reason of the above provisions any damage is not covered by this Insurance, the burden of proving that such damage is covered will be upon the insured.
Claim Settlement Procedure of Burglary Insurance Policy
For availing a smooth and easy claim settlement process you can follow the below-mentioned steps:
If your house building or the contents of it suffer any loss or damage, you need to intimate the insurer immediately in writing, at least within 15 days from the commencement of the incident.
A surveyor will be appointed on the behalf of the insurance company to assess the damage or loss and to make a report on that. It would be advisable to keep a copy of that report as it may help you in future reference.
All the proofs, witnesses, and required documents are needed to be submitted along with the duly filled claim form.
Preserve and collect evidence, take and preserve photographs and produce wherever required.
Your claim approval highly depends upon the report of the surveyor. So do not produce any wrong or misleading information. And, cooperate with the surveyor and the insurer.
Whenever required report to police (FIR), and appropriate concerned legal authorities and provide a copy of that to the surveyor and insurer.
It is advisable to keep a copy of the Burglary Policy and to produce it before the insurer and the surveyor.
If the company finds the case fit and genuine, it would approve the claim, else the claim would be rejected.
Document Required For Filing a Claim
The followings are the mandatory details for the claim settlement procedure.
Address of the insured property
Date and time of the accident and the location of loss
The police report: It should include copies of your written complaint to the police and the First Investigation Report (FIR)
Claim form: Duly filled and completed in all respects
Claim bill: Detailed claim bill with necessary bills and vouchers
Documentary evidence about the value of property stolen through an invoice, bill, books of account, etc.
Final survey report: As made by the surveyor
Copy of your burglary insurance policy certificate
Letter of indemnity: You should provide a letter of authority in favor of the insurance company if there is any right to recovery
Photographs, if any
Things To Remember Before Buying Burglary Insurance Policy
There are multiple insurance companies in India that provide burglary insurance with different variants and benefits. To select the most convenient one, you need to keep things in mind and they are as follows.
At first, make a list of your possessions that are exposed to the risks of burglary or theft.
Compare different insurance companies that offer burglary insurance and see their variations and where you can avail of the maximum benefits. You can do this comparison online that will make your job easier.
Go for only that company, which offers the maximum coverage and convenient for you in all aspects.
Check whether that policy covers only burglary, theft, or both. Some policies also cover robberies. Check for that too.
The sum insured should be sufficient enough to cover the loss that you suffer. If the sum insured is inadequate, the claim would be settled on a proportionate basis even if the loss is covered under the sum insured.
The premium of a burglary insurance policy is usually a bit higher but it can be reduced too. Know the possible ways and use the available ways to reduce the premium so that the policy becomes affordable.
The Factors That Affect The Amount of Premium of Burglary Insurance Policy
The premiums of burglary insurance policy mostly depend on the asset covered in its market value and the risks that they are exposed to. Though usually the amount of the premium of this insurance plan remains higher there are multiple other ways in which you can reduce the premium amount and the mentions are as follows.
By installing safety devices in your house or business premises will send you an alert in case of any unlawful activity or forced entry.
By installing CCTV cameras that will help you to track anyone’s activity and thus will in prevent or lower the risk of burglary or theft.
By strongly fencing the premises of the insured property.
By using an advanced safety lock that will keep your valuable possessions safe.
By never advertising your absence in the insured premises.
By installing security alarms which will help you to lower the extent of the loss.
Few Insurance Companies That Provide Burglary Insurance Policy in India
There are multiple insurance companies in India that provide different types of burglary insurance policies with various benefits and the mentions are as follows.
Reliance General Insurance
Bharti AXA General Insurance Company Limited
Royal Sundaram General Insurance
Bajaj Allianz General Insurance
The Oriental Insurance Company Limited
Frequently Asked Questions
1. Can I cancel my policy anytime?
Yes, you can. In that case, you have to give 15 days’ notice in writing, to the Company, for the cancellation of this Policy.
2. When my house was burgled I was on holiday for 20 days. Will I be compensated for the loss?
No, burglaries occurring when the house is left unattended for more than 7 days are not covered.
3. Is FIR compulsory for the claim settlement of the burglary insurance policy?
Yes, it is mandatory.
4. How can I renew this policy?
The policy will expire at the end of the Policy Period. In case you want to renew the Policy, You have to apply for renewal before the end of the Policy Period and pay the required premium amount. It has to be remembered that the renewal of the Burglary Insurance Policy is not automatic.
5. What is the mid-term reduction in sum insured?
In the event of a decrease in the Sum Insured being agreed to, the company will refund the premium on such a reduction in Sum Insured. The premium refund will be Premium collected less premium chargeable for the expired period on a short period scale.