Your Partners in Industrial Development

Comprehensive Insurance Scheme


Government of India
Ministry of Commerce & Industry
(Department of Industrial Policy and Promotion)



New Delhi, the 22nd October, 2002.

F.No.1(11)/2002-NER. In pursuance of Ministry of Commerce and Industry, Department of Industrial Policy & Promotion O.M. No.1(13)/2000-NER dated 14th June, 2002, the Government of India is pleased to make the following Scheme of Comprehensive Insurance for Industrial Units for the state of Jammu & Kashmir with a view to accelerating industrial development in the state. 

1. Short Title:- This scheme may be called Central Comprehensive Insurance Scheme, 2002.

2. Commencement and Duration :- It will be effective from the day of its publication and remain in force upto and inclusive of 14.06.2012. 

3. (i) Applicability:- The Scheme is applicable to new Industrial Units and existing* units on their substantial expansion on or after 14th June, 2002. 

(ii) Eligibility:- The subsidy will be available during the duration of the scheme to an eligible industrial unit for a period of ten years from date of commencement of commercial production. 

4. Definition of Industrial Unit:- Any industry which is included in Fire Policy ‘C’ as per All India Fire Tariffs.

5. Fixation of Sum Insured:- The Policy shall be issued on market valuation by the Insurance Company.

* amended vide Notification dated 12th November, 2002. 

6."Concessions for substantial expansion should extend to include all new investments by entrepreneures, which leads to substantial additional employment creation by an existing entrepreneur without insisting on major expansion.However,credit under the Industrial Policy Package should not be merely for paying off old debts or for equipment already in place".

(Substituted vide Ammendment dated 28th Nov.,2003)

7. Mode of Operation:- The insured party shall pay the initial premium which shall be reimbursed by the nodal insurance company out of the revolving fund maintained by that company. Funds for this revolving fund shall be contributed by Ministry of Commerce and Industry, Department of Industrial Policy & Promotion. The Insurance policy envisaged under the Scheme will be as indicated in Annexure-A. 



Joint Secretary 


Annexure - A



“IN CONSIDERATION OF the Insured named in the schedule hereto having paid to the __________ Insurance Company Limited (hereinafter called the company) the premium mentioned in the said schedule, THE COMPANY AGREES, (subject to the conditions and exclusions contained herein or endorsed or otherwise expressed hereon) that if after payment of the premium the property insured described in the said schedule or any part of such property be destroyed or damaged by the following:-

i. Fire

ii. Lightning

iii. Explosion/Implosion but excluding loss of or damage

(a) to boilers (other than domestic boilers), economisers or other vessels, machinery or apparatus in which steam is generated or their contents resulting from their own explosion/implosion,

(b) caused by centrifugal force.

iv. Riot, Strike, Malicious, and terrorist Damage as per riot Strike, Malicious and terrorist Damage clause printed hereon.

v. Impact by any Rail/Road vehicle or animal.

vi. Aircraft and other aerial and/or space devices and/or articles dropped therefrom, excluding destruction or damage occasioned by pressure waves caused by such devices,

vii. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation.

viii. Subsidence and Landslide (including Rockslide) resulting in collapse of the entire building or part of,

ix. Earthquake Fire and Shock 

During the period of insurance named in the said schedule or of any subsequent period in respect of which the insured shall have paid and the Company shall have accepted the premium required for the renewal of the policy, the Company will pay to the Insured the value of the Property at the time of the happening of its destruction or the amount of such damage or at its option reinstate or replace such Property or any part thereof.

PROVIDED that the liability of the Company shall in no case exceed in respect of each item the sums expressed in the said Schedule to be insured thereon or in the whole the total sum insured thereby or such other sum or sums as may be substituted thereof by memorandum thereon or attached hereto signed by or on behalf of the company.” 


This Policy covers Riot, Strike, Malicious and Terrorist Damage as under:-

I. Loss of or visible physical damage by external violent means to the property insured directly caused by:


1) The act of any person taking part together with others in any disturbance of the public peace (whether in connection with a strike or lock-out or not) not being an occurrence mentioned in exclusion 7(a),(b). 

2) The action of any lawfully constituted authority in suppressing

or attempting to suppress any such disturbance or in minimising the consequence of any such disturbance. 

3) The willful act of any striker or locked out worker done in furtherance of strike or in resistance to a lock out resulting in visible physical damage by external violent means.

4) The action of any lawfully constituted authority in preventing or attempting to prevent any such act or in minimising the consequences of any such act. 

5) Any malicious act but excluding any omission of any kind of any person(whether or not such act is committed in the course of a disturbance of public peace) provided that the Company shall not be liable for any loss of damage arising out or in the course of burglary, housebreaking, theft or larceny or any attempt by any person taking part therein. 

II. Loss of or Damage to the property insured by explosion or otherwise directly caused by:


1. An act or terrorism committed by a person or persons acting on behalf of or in connection with any organisation. 

2. The action of any lawfully constituted authority in suppressing or attempting to suppress any such act, of terrorism or in minimising the consequences thereof. 

For the purpose of this clause ”terrorism” shall mean the use of violence for political ends and shall include any use of violence for the purpose of putting the public or any section of the public in fear.




1. Loss by theft during or after the occurrence of any insured peril except as provided for in the Riot, Strike and Malicious Damage Clause. 

2. Loss or damage to property occasioned by its undergoing any heating or drying process. 

3. Loss or damage occasioned by or through or in consequence of 

(a) the burning of property on order of any public authority

(b) subterranean fire 

4. Loss of damage directly or indirectly caused by or arising from or in consequence of or contributed to by nuclear weapons material.

5. Loss or damage directly or indirectly caused by or arising from or in consequence of or contributed to by ionising radiations or contaminations by radio-activity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purpose of this Exclusion only, combustion shall include any self-sustaining process of nuclear fission.

6. Loss or damage to any electrical machine, apparatus, fixture or fitting (including electric fans, electric household or domestic appliances, wireless sets, television sets and radios) or to any portion or the electrical installation, arising from or occasioned by over-running, excessive pressure, short circuiting, arcing, self-heating or leakage or electricity, from whatever cause(lightning included) provided that this exemption shall apply only to the particular electrical machine, apparatus, fixture, fitting or portions of the electrical installation so affected and not to other machines, apparatus, fixtures, fittings, or portions of the electrical installation which may be destroyed or damaged by fire so set up. 

7. Loss or damage occasioned by or through or in consequence directly or indirectly, of any of the following occurrences, namely, 

(a) War, invasion, act of foreign enemy hostilities or warlike operations (whether war be declared or not), civil war,

(b) Mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power.

In any action, suit or other proceeding where the company alleges that by reason of the provisions of the above exclusions any loss or damage is not covered by this insurance, the burden of proving that such loss or damage is covered shall be upon the insured.

8. Loss or damage to bullions or unset precious stones, any curios or work of art, for an amount exceeding Rs.1000/-, manuscripts, plans, drawings patterns, models or moulds, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of account or other business books, computer system records, explosives, unless otherwise expressly stated in the policy.

9. Property insured if removed to any building or place other than in which it is herein stated to be insured except Machinery and Equipments temporarily removed for repairs, cleaning, renovation or other similar purposes for a period not exceeding 60 days. 

This insurance does not cover 

a) Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind or description whatsoever. 

b) Loss or damage resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or operation or omissions of any kind.

c) Loss or damage occasioned by permanent or temporary dispossession resulting from confiscation commandeering or requisition by any lawfully constituted authority. 

d) Loss or damage occasioned by permanent or temporary dispossession of any building or plant or unit or machinery resulting from the lawful occupation by any person of such building or plant or unit or machinery or prevention of access to the same. 

PROVIDED nevertheless that the Company is not relieved under (c) or (d) above of any liability to the Insured in respect of physical damage to the property insured occurring before dispossession or during temporary dispossession. 



1. THIS POLICY shall be voidable in the even of mis-representation, mis-description or non-disclosure of any material particular.

2. All insurance under this policy shall cease on expiry of seven days from the date of displacement of any building or part hereof or of the whole or any part of any range of building or of any structure of which such building forms part. 

PROVIDED such a fall or displacement is not caused by insured perils loss or damage by which is covered this policy or would be covered if such building, range of buildings or structure were insured under this policy. Notwithstanding the above, the company, subject to an express notice being given as soon as possible but not later than 7 days of any such fall or displacement, may agree to continue the insurance subject to revised rates, terms and conditions as may be decided by it and confirmed in writing to this effect. 

3. The insurance may be terminated at any time at the request of the insured, in which case the company will retain the premium at customary short period rate for the time the policy has been in force. The insurance may also at any time be terminated at the option of the Company on 15 days notice to that effect being given to the Insured, in which case the company shall be liable to reply on demand a ratable proportion of the premium for the un-expired term from the date of the cancellation. 

4. (1) On the happening of any loss or damage the insured shall forthwith give notice thereof to the company and shall within 15 days after the loss or damage or such further time as the company may in writing allow in that behalf, deliver to the company. 

(a) A claim in writing for the loss or damage containing as particular an account as may be reasonably practicable of all the several articles or items or property damage or destroyed, and of the amount of the loss or damage thereto respectively, having regard to their value at the time of the loss or damage not including profit of any kind. 

(b) Particulars of all other insurances, if any. 

The insured shall also at all time at his own expense produce, procure and give to the company all such further particulars, plans, specification books, vouchers, invoices, duplicates or copies thereof, documents, investigation reports (internal/external), proofs and information with respect to the claim and origin and cause of the fire and the circumstances under which the loss or damage occurred and any matter touching liability or the amount of the liability of the Company as may be reasonably required by or on behalf of the company together with a declaration and oath or in other legal from of the truth of the claims and of any matters connected therewith. 

No claim under this policy shall be payable unless the terms of this condition have been complied with.

(i) The Company reserves the right to treat the claim as no claim if no information/documents are submitted by the insured with a period of 6 months from the date of loss. 

(ii) In no case whatsoever shall the Company be liable for any loss or damage after the expiration of 12 months from the happening of the loss or damage unless the claim is the subject of pending action or arbitration; it being expressly agreed and declared that if the Company shall disclaim liability for any claim hereunder and such claim shall not within 12 calendar months from the date of the disclaimer have been made the subject matter of a suit in a court of law then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder. 

5. On the happening of loss or damage to any of the property insured by this policy, the Company may:- 

(a) enter and take and keep possession of the building or premises where the loss or damage has happened. 

(b) take possession of or require to be delivered to it any property of the insured in the building or on the premises at the time of the loss or damage. 

(c) keep possession of any such property and examine, sort, arrange, remove or otherwise deal with the same.

(d) sell any such property or dispose of the same for account of whom it may concern. 

The powers conferred by this condition shall be exerciseable by the Company any time until notice in writing is given by the insured that he makes no claim under the policy, or if any claim is made, until such claim is finally determined or withdrawn, and the company shall not by any act done in the exercise or purported exercise of its powers hereunder, incur any liability to the insured or diminish its rights to rely upon any of the conditions of this policy in answer to any claim etc. 

If the insured or any person on his behalf shall not comply with the requirements of the Company or shall hinder or obstruct the Company, in the exercise of its powers hereunder, all benefits under this policy shall be forfeited.

The Insured shall not in any case be entitled to abandon any property to the Company whether taken possession of by the Company or not.

6) If the claim be in any respect fraudulent, or if any false declaration be made or used in support thereof or if any fraudulent means or devices are used by the insured or any on acting on his behalf to obtain any benefit under the policy or if the loss or damage be occasioned by the willful act, or with them connivance of the insured, all benefits under this policy be forfeited. 

7) If the company at its option, reinstate or replace the property damaged or destroyed or any part thereof, instead of paying the amount of the loss or damages, or join with any other Company or Unsure(s) in so doing, the Company shall not be bound to reinstate exactly or completely but only as circumstances permit and in reasonably sufficient manner, and in no case shall the Company be bound to expend more in reinstatement than it would have cost to reinstate such property as it was at the time of the occurrence of such loss or damage not more than the sum insured by the Company thereon. 

If the Company so elect to reinstate or replace any property, the insured shall at his own expense furnish the Company with such plans. Specifications, measurements, quantities and such other particulars as the Company may require, and no acts done, or caused to be done, by the company with a view to reinstatement or replacement shall be deemed an election by the company to reinstate or replace. 

If in any case the Company shall be unable to reinstate or repair the property hereby insured, because of any municipal or other regularizations in force affecting the alignment of streets or the construction of buildings or otherwise, the Company shall in every such case, only be liable to pay such sum as would be requisite to reinstate to its former condition. 

8) The insured shall at the expense of the Company do and concur in doing, and permit to be done, all such acts and things as may be necessary or reasonably required by the Company for the purpose of enforcing any rights and remedies or of obtaining relief or indemnity from other parties to which the Company shall be or would become entitled or subrogated, upon its paying for or making good any loss or damage under this policy, whether such acts and things shall be or become necessary or required before or after his indemnification by the Company. 

9) If at the time of any loss or damage happening to any property hereby insured there be any other subsisting insurance or insurances, whether effected by the insured or by any other person or persons covering the same property, this Company shall not be liable to pay or contribute more than its ratable proportion of such loss or damage. 

10)If the property hereby insured shall at the breaking out of any insured peril, be collectively of greater value than the sum insured thereon, then the insured shall be considered as being his own insurer for the difference, and shall bear a ratable proportion of the loss accordingly. Every item, if more than one of the policy shall be separately subject to this condition. 

Provided, however that if the sum insured hereby on the property insured shall at the operation of any of the perils insured under this Policy or at the commencement of such destruction or damage be not less than 85% (eighty-five percent) of the collective value of the property insured, this condition shall be of no purpose and effect. 

11)If any dispute or difference shall arise as to the quantum to be paid under this Policy (liability being otherwise admitted) such difference shall independently of all other questions be referred to the decision of a sole arbitrator to be appointed in writing by the parties to or they cannot agree upon a single arbitrator within 30 days of any party invoking arbitration the same shall be referred to a panel of three arbitrators, comprising of two arbitrators, one to be appointed by each of the parties to the dispute/difference and the third arbitrator to be appointed by each of the parties to the dispute/difference and the third arbitrator to be appointed by such two arbitrators and arbitrator shall be conducted under and in accordance with the provisions of the Arbitration and Conciliation Act, 1996. 

It is clearly agreed and understood that no difference or dispute shall be referable to arbitration as herein before provided, if the company has disputed or not accepted liability under or in respect of this policy. 

It is hereby expressly stipulated and declared that it shall be a condition precedent to any right of action or suit upon this policy that the award by such arbitrator/arbitrators of the amount of the loss or damage shall be first obtained. 

12)At all times during the period of insurance of this policy the insurance cover will be maintained to the full extent of the respective sum insured in consideration of which, upon the settlement of any loss under this policy, pro rata premium for the unexpired period from the date of such loss to the expiry period of insurance for the amount of such loss shall be payable by the Insured to the Company.