Fairmoves Financial Services Pvt. Ltd.

Every business organisation has a range of people with defined roles and responsibilities. Some people play a critical role in the business organisation's functioning, performance, or profitability. The absence of such a person may lead to a decrease in revenue, profits, and project delays. The company can identify such key persons for their business like, Directors, Project managers, Salespeople, and other people with valuable specialised skills. Keyman insurance is a type of life insurance policy that covers the business organisation from losses arising from the death of its key people. The company pays the premium, and if the insured person dies during the policy term, the death benefit is paid to the company. When an organisation feels that the absence of such key persons can greatly affect its performance, then it buys a Keyman business insurance policy where:

The policy is proposed by the business organisation.
Premium payments are made by the business organisation.
The life of 'key' people is insured for a fixed amount.
The business organisation is the beneficiary of the policy.

Features of Keyman Insurance

As per IRDAI guidelines, only pure term policies can be purchased under Keyman Insurance
The policy maturity date is equal to the date of retirement of such person or the date of expiry of employment contract.
The business organisation can be the only nominee.

Taxation benefits of Keyman Insurance

According to CBDT Circular No. 762, the premium paid by the business organisation for the key man insurance policy is considered as business expenditure u/s 37(1). Therefore, the taxable profits of the business organisation are reduced, which in turn reduces its tax liability.
In case of death of the key man, the business organisation receives the death benefit. This amount is treated as business profits under Section 28(vi) of the Income Tax Act 1961.

Fire Insurance

The Property insurance, popularly known as Fire Insurance Policy is a policy that ensures it cover the risk of assets against Fire, Lightning, Explosion & Implosion, Aircraft Damage, Bush Fire, Forest Fire, Storm, Tempest, Typhoon, Hurricane, Flood, Inundation, Riots, Strikes, Malicious Damage, Earthquake, Terrorism etc. Some of these perils (i.e. cause of loss) are optional covers. As the policy covers many other types’ risks apart from fire, this policy is popularly called as Standard Fire and Special Perils (SFSP) Policy. It is also possible to insure against loss of profit. If the factory is shut following covered peril or if the showroom is closed due to operation of insured peril, the reduction in gross profit due to reduction in output or turnover can be covered with standing charges (fixed expenses like rent, salary etc.) being clearly specified.

Burglary Insurance

A Burglary Insurance protects the business assets against burglary. Burglary is defined as a forcible entry into the premises. Any loss due to theft without forcible entry or exit into the premises need to be covered as an add on cover.

Machinery Breakdown Insurance

Plant & Machinery is the most important aspect of any business and is quite expensive to set up again in the event of a loss apart from the impact it may have on the Cash Flow.

Machinery Breakdown (MBD) Policy covers any damage to machinery and covers the cost of reinstatement or replacement of Machinery. At times when machinery stops functioning suddenly, cost of restoring back the machinery to working condition could be costly affair especially when the parts to be replaced are very costly and / or when the repair charges are high.

MBD Insurance helps in such cases by providing right amount of indemnity for repairing the machinery. The policy also pays for total loss on market value basis if the repair is not possible or feasible.

Electronic Equipment Insurance

The Electronic Equipment Insurance (EEI) covers any unforeseen damage or loss to any of the electronic equipment which the business may use that include Computers and any other electronic devices for the day to day functioning of business. The coverage of this is all risk in nature and hence covers risk of any type which results in loss or damage to the equipment.

The types of risks covered include fire damage, lightning, flood, earthquake, burglary, impact damage and also breakdown. This cover is only in respect of such equipment which are electronic in nature in terms of its functioning.
The policy also covers the additional expenditure incurred by way of hiring alternate systems for honouring the timely delivery commitment to customers and also expenses related to external data device.
Portable equipment such as Laptops & Mobile Phones can also be covered on same lines which additionally include loss or damage even when these equipment are carried outside the specified risk location.

Electronic Equipment Insurance

An Industrial risk is a complex and usually a larger risk. The Industrial All Risks insurance is a comprehensive package policy which covers multi-dimensional risks to cover your assets from any unforeseen situations except any risks which are specifically excluded. The policy covers Material Damage, Business Interruption (Loss of Profits) and other operational risks with vast options for add-on covers.
Apart from coverage for Loss of Profits following fire and allied perils, the policy offers cover in respect of breakdown risks of mechanical, electrical and electronic appliances too.
Additionally, the policy even offers Loss of Profit following machinery breakdown.
While the material damage cover is for one year, the business interruption cover can be even up to three years depending upon the maximum time it may take for resuming commercial production post the incident resulting in loss.

Signboard/ Neon Signboard Insurance

The sign boards are generally, put outside the respective establishments for displaying the name of the establishment etc., or advertisement boards in different places at different heights which gives wide appeal. The sign board policy covers different types of boards displayed by the establishments.

Plate Glass Insurance

Modern buildings have all the exteriors made of complete glass for various reasons. Every second new building coming up in last 10 years have entire external walls fully covered by or supported by glass for better look and also various architectural reasons.
Huge amount of money is spent on glass although it is known fact that, the glass is a very fragile material and have greater exposure for breakage due to number of reasons.
The Plate Glass Policy covers glasses installed in the premises against accidental damages, means a sudden and unforeseen fracture extending through the entire thickness of glass and clearly visible to naked eye. It excludes disfiguration of glass and damages only to lettering, art work or ornamentation work, etc., unless they are specifically covered.

Office Package Policy

An office insurance policy is a comprehensive package policy which provides convenience of having coverage of multiple sections in one single policy. The policy allows the insured to opt coverage of all the above sections in a single policy.