Covering Building under LAGHU & SOOKSHMA POLICIES

In a Laghu Insurance Policy, the schedule mentions that Building Covered for Rs 10 crores.
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The definition of Building in the policy is ~ full definition of Building is not being reproduced here:
The following “additional structures” located on your premises and used for your business are shown in the Policy Schedule.
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Air conditioning systems
Most of the insurers are just mentioning Building in the schedule. However the “additional structures” are not being shown in the schedule.
An insured suffered a loss due to a fire to the AC systems. His sum insured is adequate including all “additional structures”.
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The insurer is not paying the loss for AC systems since they are not shown in the schedule.
This situation will be faced by most micro and small industries or commercial establishments.

IRDAI wanted to help micro and small industries through Sookshma and Laghu policies. But practically, the same is not being achieved just because the insurers are mentioning on “Building” and not the additional structures in most policies.

Need for insurers to relook at their policy issuance.

~Blog by Atmaram Cheruvu