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Shopkeepers' FAQs on Claims

Here are some answers to basic questions about claims for a Shopkeeper's insurance policy.

Apnainsurance Research Bureau

05 Feb 2008

If my AC has stopped working due to regular usage over the years and I am asked to purchase a new one, can I claim damages under my shopkeepers' insurance policy?

No. Even if your shopkeepers' insurance includes the mechanical and electrical breakdown section, the insurance company is not liable to pay for damages. Companies specifically state in the policies that they will not pay for damages caused due to regular wear and tear.

The insurer is liable to pay only for losses or damages arising out of accidental electrical or mechanical breakdown. It will not cover items that are more than 7 to 10 years old; nor will it cover for acts considered willful or due to gross negligence on your part or the part of the supplier or manufacturer.


If there was a short circuit in my shopping centre and some of my electrical appliances such as air conditioners, photocopying machines stopped working, can I claim damages under my shopkeepers' insurance policy?

Yes, provided you have purchased the section that covers breakdown of electrical/mechanical appliances. It provides cover for sudden and unforeseen electrical or mechanical breakdown of electrical appliances.


If I take my laptop to a technician to get it repaired and it gets stolen on the way, is the burglary covered?

Typically, any burglary taking place outside the shop or the insured premises are not covered under the Housebreaking and Burglary plan.

Moreover, theft from any car is excluded even under the Television/Video Equipments and Portable Computer/Mobile Phone section. However, if you can prove that it is by visible physical and forcible means, and the laptop was stored concealed in the boot of the car, and the car had all doors, windows and other openings securely locked and properly fastened, and that you were in the course of a travel, you could make a claim under the Television/Video Equipments and Portable Computer/Mobile Phone section.


What if my employee is involved in a burglary; can I make a claim?

No. Although the Burglary and Housebreaking section provides for damages to the shop and contents against loss or damage caused by burglary, housebreaking, theft, robbery or dacoity, losses or damages caused by a member of your staff in the premises will not be covered by the insurance company.


What if an employee who has already been warned before is involved in a burglary or fraud case; can I make a claim?

No. Although the Burglary and Housebreaking section provides for damages to the shop and contents against loss or damage caused by burglary, housebreaking, theft, robbery or dacoity, losses or damages caused by a member of your staff in the premises will not be covered by the insurance company.

If your employee is involved in a fraud case and she/he has already been warned before, your claim will not be covered by the insurance company.


How do you differentiate between riots and terrorism cover in a shopkeepers' policy?

Riot refers to the violent disturbance of the public peace by three or more persons assembled for a common purpose.

Terrorism/terrorist activity means use of force or violence harming human life or property, with the objective of pursuing personal or vested interests.



See also:

Shopkeepers' FAQs on Coverage
Shopkeepers' FAQs on Premiums, Costs, and Discounts
Basic Shopkeepers' Insurance FAQs





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