Property Insurance - Policyicon

INSURANCE SOLUTIONS FOR CO-OPERATIVE HOUSING SOCIETY

A Housing Residential Complex with a registered society is required to manage the Society affairs including the overall administration with a little time to worry about the risks and liabilities which the building and residents are often exposed to. At Policy Icon, we help you manage these risks & liabilities through an Insurance Package which has been specially designed keeping in mind the Overall insurance needs of your society. It is an End-to-End solution which protects your society from risks Like, Fire, Natural calamities such as Earthquake, Flood, Storm etc. Malicious Damage, Riots, Burglary, Damage to Property, Machinery Breakdown, Third-party Liability, legal suits against the management committee alleging mismanagement Etc.

RISK FACTORS

WHO CAN BUY?

This Insurance can be bought by the Co-operative housing society registered under the Maharashtra Co-operative Societies Act. 1960 which has an interest in the assets being proposed for insurance, i.e., they should stand to lose financially in the event of loss or damage to such assets.

• To cover the assets against accidental damages arising from Fire, natural perils, water damages etc.
• Bye-Law No. 160 (a) of Co-operative Housing Society (CHS), Maharashtra states, “The Society shall insure its building/s necessarily against risk of natural calamities, fire, flood, earthquake, third party liability and like.”
• It protects you against legal liability arising out of accidental bodily injury to third parties and or accidental loss and /or damage to property belonging to third parties due to negligence of the CHS.
• Since this policy covers Third party Liability, the CHS will be able to fulfil the provisions of Maharashtra Lifts, Escalators and Moving Walks Act, 2017 which says “The owner shall, after the completion of the erection of such lift or escalator or moving walk, ensure third party insurance so as to cover the risk of passengers using such lift or escalator or moving walk.”
• To cover liabilities arising out of use of swimming pool / gymnasium.
• To cover legal liability for Third party suits alleging mismanagement on part of management committee in running the CHS.

WHY SHOULD YOU TAKE THIS COVER?

To cover the assets against accidental damages arising from Fire, natural perils, water damages etc.

Bye-Law No. 160 (a) of Co-operative Housing Society (CHS), Maharashtra states, “The Society shall insure its building/s necessarily against risk of natural calamities, fire, flood, earthquake, third party liability and like.”

It protects you against legal liability arising out of accidental bodily injury to third parties and or accidental loss and /or damage to property belonging to third parties due to negligence of the CHS.

Since this policy covers Third party Liability, the CHS will be able to fulfil the provisions of Maharashtra Lifts, Escalators and Moving Walks Act, 2017 which says “The owner shall, after the completion of the erection of such lift or escalator or moving walk, ensure third party insurance so as to cover the risk of passengers using such lift or escalator or moving walk.”

To cover liabilities arising out of use of swimming pool / gymnasium.

To cover legal liability for Third party suits alleging mismanagement on part of management committee in running the CHS.

WHAT ASSETS NEED TO BE COVERED?

• Building including Plinth and foundation (This should include total sq. ft area of the building including Club houses, Gyms, Restrooms, Swimming pools, Security guard cabins, Compound walls, Internal Roads etc)
• Landscaping (including value of Lawns and Trees)
• Plant and Machinery like Lifts, DG Sets, Swimming pool filtration systems, Air conditioners in common areas, Boom Barriers etc.
• Furniture fixtures and fittings.
• Office Equipment’s
• Stock of materials stored in the premises if any

WHAT DOES THIS INSURANCE COVER?

This Insurance will cover physical loss or damage, or destruction caused to the Insured Property by
• Fire
• Explosion or Implosion
• Lightning
• Earthquake, volcanic eruption, or other like convulsions of nature
• Storm, cyclone, typhoon, tempest, hurricane, tornado, tsunami, flood and inundation
• Subsidence of the land on which Your Home Building stands, Landslide, Rockslide
• Bush Fire, Forest fire, Jungle fire
• Impact damage of any kind, i.e., damage caused by impact of, or collision caused by any external physical object (e.g., vehicle, falling trees, aircraft, wall etc.)
• Missile testing operations
• Riot, Strikes, Malicious Damages
• Bursting or overflowing of water tanks, apparatus and pipes.
• Leakage from automatic sprinkler installations.
• Theft within 7 days from the occurrence of and proximately caused by any of the above Insured Events.

OPTIONAL ADD-ON COVERS

• Burglary - Protects all contents against Burglary or Housebreaking (theft following upon an actual forcible and violent entry of or exit from the premises), or Holdup including Robbery
• Money in safe - Covers loss of money whilst securely kept in the insured premises and loss or damage to any safe, strong room or cash box securing money
• Workmen's Compensation – covers liability to compensate the society employees like maids, housekeepers, gardeners, security guards for bodily injury or death caused due to accidents/occupational diseases arising out of and in course of employment
• Acts of terrorism
• Third Party Liability including swimming pool and lift liability
• Machinery Breakdown cover for Lifts and other machineries
• Directors and officers Liability – covers liability arising out of legal suits against the committee members for mismanagement of funds or running the society affairs.

WHAT IS NOT COVERED?

• Cost of Land on which the property is built
• Property under construction
• Burning of Insured Property by any order of public authority

• Damage caused by
a) normal cracking, settlement or bedding down of new structures,
b) the settlement or movement of made-up ground,
c) coastal or river erosion,
d) defective design or workmanship or use of defective materials, or
e) demolition, construction, structural alterations or repair of any property, or groundworks or excavations.

• caused by pressure waves caused by aircraft or other aerial or space devices travelling at sonic or supersonic speeds.

• caused by
a) temporary or permanent dispossession, confiscation, commandeering, requisition or destruction by order of the government or any lawful authority, or
b) temporary or permanent dispossession of Your Home by unlawful occupation by any person.
• repairs or alterations in Your Home or the building in which Your Home is located, b. repairs, removal or extension of any sprinkler installation, or c. defects in the construction known to You.
• Your deliberate, wilful or intentional act,
• War, invasion, war-like operations,
• Ionising radiation,
• Pollution or contamination,
• Property is missing or has been mislaid,
• Consequential or indirect loss or damage,
• Loss or damage to bullion or unset precious stones, manuscripts, vehicles and explosive substances,
• Addition, extension, or alteration to Your building more than 10% of its carpet area,
• Costs, fees or expenses for preparing any claim
• Liability arising out of wilful or intentional non-compliance of any statutory provision
• Fines, penalties, punitive damages

DO’s & DON’T’s FOR THE SOCIETY BEFORE & AFTER TAKING COVER

• State all and true information about the Society and articles disclosed while taking a proposal.
• How to calculate the Sum insured correctly
a) The sum insured for a housing society or a condominium should be the reconstruction cost of the entire complex including all common areas. The estimated cost of construction per sq. ft. could be considered between Rs. 2,000 to Rs. 4,000 per sq. ft. depending on the class of construction or building specifications (for e.g. The high-rise construction cost could be lower than a 5-floor building) In case of a claim the insurer, will pay the reconstruction cost without any deduction for depreciation.
b) For Lift and other machinery, pls provide the new replacement value i.e., present cost of buying a new machine with similar specifications.
• Take due care to prevent theft, loss or damage to the Building and Contents declared under the policy.
• Ensure that unauthorised persons do not occupy the Building without Permission
• Round the clock security with proper SOPs in place for entry and exit.
• Regular training to the staff about the usage of the premises and hold frequent fire drills to ensure awareness during such an event
• Ensure regular servicing of Firefighting systems like Handheld Fire extinguishers, Hydrants, Fire Pumps, Sprinklers and related equipment installed at the premises
• Have proper AMCs for the Machineries and Security systems installed at the premises.
• Take regular backup of CCTV footages (if any installed)
• Always Inform the insurer about the change in circumstances if any, such as any addition, alteration, extension to structure of the building, if any hazardous material is stored in the building.
• In case of a claim:
a) Make true and full disclosure supporting the claim
b) Provide full cooperation to insurer for inspection and investigating the claim that is made,
c) Follow the claims procedure requested by the Insurers and the Loss Adjusters

POSSIBLE CLAIM SCENARIOS

Below are a few instances which can result in losses for the CHS.

Property Damage (PD)

• Fire due to short circuit or otherwise.
• A waterbody passing nearby the CHS, can erode the foundation of the wall due to heavy waterflow during the monsoon season and resulting in wall collapse.
• Accidental damage to the gate of compound wall/Boom Barrier due to Third party vehicles crashing in the premises
• Falling of trees in the rainy season on the building structures due to heavy storm or cyclone.
• Damage to the building structures due to earthquake or other Act of God perils
• Leakage from Automatic sprinkler installations or bursting of water pipes or overhead water tanks (most common type of claim in high rise residential towers)
• Theft and burglary claims for society assets or theft of cash from safe box

Third Party Liability (TPL)

• Injury/death of resident/visitor due to faulty lift resulting in high legal cost and/or Compensation.
• Alterations, repair or digging works in the common areas leading to injury and/or property/vehicle damage of a resident or a visitor.
• Event liability during festivals such as Dandiya/Ganpati celebrations if not properly managed in congested areas may lead to injury to members due to trip/fall or short circuiting of event lights/decors leading to fire at the event venue / food poisoning due to food catering.
• Injury/death of resident due to drowning in the absence of a Life guard and/or slip/trip/fall due improper maintenance of pool surface that is slippery leading to such event.
• Improper maintenance of gym machines leading to injury to residents using these machines
• Mismanagement allegation on management committee for improper allocation of security services/adequate guards leading to thefts/robbery in the society, or poor housekeeping services leading to general health and hygiene issues, improper maintenance of lifts or swimming pools leading to threat to safety of residents including kids.

POLICY ICON VALUE ADDITIONS

• Competitive Premiums: We work with multiple Insurance partners; hence we can offer competitive rates. The insurance premium for Society valued at Rs. 10 Cr. with STFI & earthquake is in the range of Rs. 15,000/- to 20,000/- (Excluding GST)
• Insurance Campaigns: We organise various campaigns at the CHS premises which benefits the Society members by availing discounted premiums for their Individual Motor and Life & Health Insurance Premiums as well as guidance on the adequacy of their existing insurance policies, we also offer complementary claims consultancy to society members if any of their genuine claim is repudiated by insurance companies.
• Complimentary Services: depending on the quantum of policy premium, we can provide the below mentioned value added services for CHS residents:
a. Free PUC for Society member Vehicles
b. Free Dental Check-up/Blood Check-up camps
c. Free Mental Wellness Camp
d. Free Webinars on Lifestyle changes or Healthy diet programs
e. Free Webinars on Insurance awareness of various products used by individuals in their personal capacity