Info About Insurance

The Policy covers: 
 

• Due to accident damage to machinery / boilers affected in stated premise consequent upon the operation of an insured peril under the Machinery Breakdown policy
• Loss of gross profit due to reduction in turnover / output
• Increased cost of working

Sum Insured : 
 

• Sum insured is the Annual Net Profit plus Standing Charges based on the latest balance sheet figures adjusted to expected trend in the forthcoming year of operations.

The policy is subject to adjustment of premium to the extent of difference between actual Gross Profit of the current financial year and estimated profits subject to a downward limit of 50%. 
 

Definitions: 
 

Net Profit means Net Trading Profit less all capital receipts/accretions/outlays chargeable to capital less all standing and other charges including depreciation, before tax from specified business and specified premises.

Trading Profits means profits from selling goods dealt/manufactured and services rendered.

Gross Profit means Net Profit plus Insured Standing Charges

• Turnover means the amount payable (less discount) to the insured for sale of goods/services rendered in course of business at specified premises
• Indemnity period starts form the day of accident and ends not later than the number of months indicated in the policy during which the business is affected.
• Lay Off wages refers to payment to employees during indemnity period for which not work was/is available in consequence of the accident

Extensions Available: 
 

Auditor’s Fees

Wages 
 

Exclusions: 
 

• As per the Material Damage Policy