Misc Claims > Shop Keepers Policy

Shopkeepers insurance policy has been devised in the form of complete policy to cater the needs to small shopkeepers, where the value at risk including building covered should not exceed Rs.10.0 Lacs.

Special Condition of Average: in the case the insured property, stock are under insured by or less than 15% then there shall be no application of average clause. However if the % under insurance is more than 15% then this condition has no effect and average will apply.

Goods held in trust: Goods held in trust or commission are automatically covered and not be specified if they are am important element of insured trade e.g. tailoring shop, watch repairing shop etc. or any other goods on which insured has a insurable interest.

Sum Insured: The sum insured is meant under shopkeeper policy is Rs.10.0 Lacs, however in some cases the policy is issued for around Rs.2.0 Crores also.

Case Study

There was a fire in a footwear shop and they have taken the coverage for Rs.50.0 Lacs and the stock worth Rs.55.0 Lacs were damaged in the fire.

In the front page of the policy schedule the coverage under section IB, is written as contents, excluding money and valuables, but including furniture, fixture and fittings and stocks in trade. However in the second page i.e. main schedule the coverage under fire and allied perils is mentioned as “Stock of leather goods, footwear & other allied goods of trade for Rs.50,00,000/- only”. We also discussed the matter with the underwriters before issuing the survey report, wherein they showed the proposal form for the period 10.04.06 to 09.04.07, where in there was a bifurcation with furniture and fixtures for Rs.15,00,000- and stocks for Rs.35,00,000/- with a different pen, which seems to have been added later on.

However, the policy is meant for stocks and other contents, the sum insured was considered as Rs. 35.0 Lacs for stocks and Rs.15 Lacs for other contents.