Question 1

What is the Office Package Policy and what types of offices are eligible?

Accepted Answer

the insurer's Office Package Policy is a comprehensive bundled package covering 10 sections for offices — fire, burglary, business interruption, money in transit, plate glass & neon signs, electronic equipment (including data), business equipment breakdown, personal accident, fidelity guarantee, and public liability.

IRDAI standard definition of an eligible office:
"A place located in a building which is made of brick walls and RCC roof where business, clerical, professional and administrative activities are carried out."

Eligible office types:
→ IT companies, software firms, BPOs, KPOs
→ CA firms, law firms, consultants, architects
→ Banks, NBFCs, financial services, insurance offices
→ Corporate head/regional/registered offices
→ Advertising, design, and media agencies
→ NGOs, educational administration, government/PSU offices
→ Any professional services office in brick + RCC building

NOT eligible:
→ Manufacturing/factory (need IAR policy)
→ Retail shops (need Shopkeepers Policy)
→ Homes/residences (need Householders Policy)
→ Restaurants, warehouses, showrooms without office activity
→ Buildings without brick walls and RCC roof

Question 2

Which section is compulsory and what is the minimum number of sections required?

Accepted Answer

Section I (Fire & Allied Perils) is the ONLY compulsory section. Unlike the Shopkeepers Policy (which has two compulsory sections — I-B and II), the Office Package Policy has only one mandatory section. All other 9 sections are optional. Section III (Business Interruption) dependency: Section III can only be opted if Section I is also selected. BI is "linked to Section I" — it only responds to losses from fire and allied perils covered under Section I. You cannot buy Section III standalone. Recommended minimum for comprehensive office protection: Section I (compulsory) + Section II (Burglary) + Section VI (Electronic Equipment) + Section X (Public Liability) = 4 sections. For IT offices: add Section III (BI) + Section IX (Fidelity) = 6 sections for the most comprehensive protection. No minimum section count: Unlike Shopkeepers Policy (minimum 4 sections), Office Package Policy can technically be issued with just Section I. However, one section alone provides very limited protection — always opt for additional sections relevant to your office's actual risks.

Question 3

What is reinstatement value — and why is it significantly better than market value?

Accepted Answer

Reinstatement Value confirmed from IRDAI policy wording: "Reinstatement Value represents the replacement value of the asset as New at time of Damage or Loss." This means: when an insured asset (computer, server, furniture, AC) is destroyed, the insurer pays the cost of buying a NEW equivalent item at today's market prices — not the depreciated second-hand value of the old item. Why this matters enormously for offices: Example: Your 4-year-old Dell PowerEdge server (purchased at ₹1.5 lakh in 2020) is destroyed by fire. → Market value policy: Pays ₹37,500 (75% depreciation over 4 years = ₹1.5L × 25%) → Office Package Policy (reinstatement): Pays ₹1.8 lakh (current price of equivalent new server with price inflation) Difference: ₹1.42 lakh — the Office Package Policy pays 4.8× more for the same event. This is why the Office Package Policy is more expensive than simple fire policies — but far more valuable. Important conditions for reinstatement: → Reinstatement must commence within 6 months of loss (written notification to the insurer) → Reinstatement must be completed within 12 months of loss → No payment beyond indemnity value until actual replacement/reinstatement is carried out → Stocks are covered on market value, not reinstatement value

Question 4

What is the difference between Section VI (Electronic Equipment) and Section VII (Breakdown of Business Equipment)?

Accepted Answer

This distinction is unique to the Office Package Policy and doesn't exist in any other product in this series:

Section VI — Electronic Equipment:
→ Coverage trigger: "Unforeseen and sudden accident from any cause" — the broadest possible trigger
→ What it covers: Computers, laptops, servers, networking equipment, EPABX, projectors, data media, system software
→ Data coverage: External data media AND costs of data restoration from backup systems
→ Excess: 5% of claim or ₹2,500 (whichever higher) for equipment; 5% or ₹1,000 for data media

Section VII — Breakdown of Business Equipment:
→ Coverage trigger: Mechanical or electrical BREAKDOWN — internal failure only
→ What it covers: ACs, generators, UPS (mechanical component), lifts, HVAC systems
→ Does NOT cover: External accidents (fire destroys AC → Section I, not VII)

The key rule:
→ External accident to any equipment → Section VI (electronic) or Section I (fire) or Section II (burglary)
→ Internal breakdown of mechanical equipment → Section VII

Together, Sections VI + VII provide complete equipment protection:
→ Your server is stolen → Section II (Burglary)
→ Your server crashes due to power surge → Section VI (Electronic Equipment)
→ Your AC compressor fails → Section VII (Business Equipment Breakdown)
→ Your AC is damaged by fire → Section I (Fire & Allied Perils)
All four scenarios covered by different sections.

Question 5

How does Section III (Business Interruption) work — how is the claim calculated?

Accepted Answer

Section III covers the REVENUE SHORTFALL when your office is forced to close due to a Section I peril (fire, flood, earthquake, etc.).

(a) Reduction in Gross Revenue: "The amount by which Gross Revenue earned during the Indemnity Period shall fall short of the Standard Gross Revenue"
(b) Increase in Cost of Working: Additional expenditure necessarily incurred to avoid/diminish the revenue loss

Key definitions:
→ Gross Revenue = money paid or payable to you in the course of business
→ Standard Gross Revenue = GR in the 12 months before the damage (adjusted for trends)
→ Indemnity Period = period of business disruption specified in the Schedule

Average clause — CRITICAL:
If your Section III SI is less than your Annual Gross Revenue, the payout is proportionately reduced. Always set Section III SI equal to or greater than your Annual Gross Revenue.

Example:
Annual GR = ₹50 lakh. Fire closes office for 3 months. GR during closure = ₹10 lakh (some remote work possible).
Revenue shortfall = ₹50L × 3/12 − ₹10L = ₹12.5L − ₹10L = ₹2.5L
Additional working costs (temporary office rent): ₹1.5L
BI claim = ₹2.5L + ₹1.5L = ₹4L (subject to Section III SI and average clause)

Difference from Shopkeepers BI (Section XI):
Shopkeepers uses a simple days-lost formula. Office Package uses actual audited Gross Revenue figures — more accurate but requires complete financial record-keeping.

Question 6

What are the Terrorism and Loss of Rent add-ons under Section I?

Accepted Answer

1. Terrorism Damage Cover: → Deletes the Terrorism Damage Exclusion Warranty from the base policy → Available for additional premium → Excess: 0.5% of total SI, minimum ₹25,000 (or ₹1 lakh as applicable) → Maximum aggregate loss across all Indian insurers at one location: ₹600 Crore → Relevant for: Offices in high-profile commercial areas, financial district offices, offices with high-value assets 2. Loss of Rent Clause (for building owners who rent out space): → If you own the building and rent parts to tenants — covers your rental income loss when the building becomes unfit for occupation due to Section I perils → Covers up to specified monthly rent for up to specified months → Period = time needed for reinstatement, limited to the insured months 3. Alternative Accommodation Rent (for owner-occupants and tenants): → If your office itself becomes unfit for occupation due to Section I perils — covers the additional cost of taking alternative office accommodation → Max indemnity period: 3 years → Owner-occupant: Actual alternative rent MINUS standard rent of original premises → Tenant (paying rent during closure): Full actual alternative rent → Tenant (landlord waives rent): Actual alternative MINUS what was paying before → Alternative must be within same municipal city/town limits

Question 7

Can I get coverage for my office data and software under the Office Package Policy?

Accepted Answer

YES — Section VI (Electronic Equipment) provides data and software coverage. This is unique to the Office Package Policy and not available under other the insurer products in this series.

"Loss or damage to External Data Media and/or costs of restoring information and data stored therein."

System Software coverage:
System software (operating systems, licensed software installed on covered equipment) is covered under Section VI at reinstatement value.

Critical condition for data restoration claims:
"We will not be liable for payment for the restoration of information and data stored in the External Data Media unless this can be achieved from a back up system for the lost data and information."

This means: if your server is destroyed and all data is on that server alone (no backup) — Section VI will pay for the hardware (new server at reinstatement value) but NOT for data restoration (because there's no backup to restore from).

Practical advice:
→ Maintain daily/weekly backups on separate media or cloud
→ Document your backup system in your proposal form
→ Declare External Data Media (hard drives, NAS, backup tapes) in your Section VI schedule
→ Data restoration costs from backup are then fully covered

Excess for External Data Media claims:
5% of claim amount or ₹1,000 — whichever is higher (lower excess than for hardware at 5% or ₹2,500).

Question 8

My office occupies a rented floor in a building — can I buy this policy as a tenant?

Accepted Answer

YES — tenants can absolutely buy the Office Package Policy. The policy is designed for both owner-occupants and tenants.

What a tenant CAN insure:
→ All contents, furniture, fixtures, IT equipment, office assets that belong to you (not the landlord)
→ Section I — Fire & Allied Perils: For your own contents in the rented space
→ Section II — Burglary: Your office contents stolen
→ Section III — Business Interruption: Your revenue loss when Section I perils disrupt operations
→ Section IV — Money in Transit: Your cash/collections
→ Section V — Plate Glass: Any plate glass in the premises (if applicable)
→ Section VI — Electronic Equipment: All your computers, servers, IT infrastructure
→ Section VII — Business Equipment Breakdown: Your ACs, generator (if owned), UPS
→ Section VIII — Personal Accident: Your employees
→ Section IX — Fidelity Guarantee: Your salaried staff
→ Section X — Public Liability: Visitors injured in your rented office

What a tenant CANNOT insure under OPP:
→ The building structure itself (landlord's responsibility — they should have their own fire policy)
→ The landlord's fixtures permanently installed in the building

Tenant-specific benefit:
Section I Add-on — Alternative Accommodation Rent: If fire forces you out of your rented office, covers your additional cost of taking alternative office premises during the repair period.

Question 9

What are the most common reasons Office Package Policy claims are rejected?

Accepted Answer

The 7 most common OPP claim rejection reasons: 1. 30-day vacancy lapse: Office left unoccupied for over 30 days without written the insurer approval — all coverage lapses. WFH periods, renovation, festive shutdowns can all trigger this if not managed proactively. 2. Sec IV — FIR not within 12 hours: Money in transit loss discovered but FIR filed 24 hours later — rejected. The 12-hour FIR window for Section IV claims is strictly enforced. 3. Sec VI — Unauthorised electronic repairs: Server damaged by power surge — IT team immediately sends it to a random repair shop without notifying the insurer or appointing an authorised repairer. Claim rejected because repair was by an "unauthorised representative." 4. Sec VI — No data backup: Server destroyed, all data lost, client claims data restoration cost. Rejected: no backup system existed, so data cannot be restored. Hardware replacement claim proceeds; data restoration cost rejected. 5. Sec II — No forced entry: Laptop stolen by an office visitor who walked in through an open door and picked it up. No forced entry — Section II (Burglary) rejected. (This might be covered under a separate all-risk portable equipment cover.) 6. Reinstatement not completed within 12 months: Fire destroys office. Insurance pays advance for reinstatement. Insured delays reinstatement beyond 12 months. Insurer's liability reverts to standard indemnity basis — not reinstatement value. Complete reinstatement within 12 months. 7. Sec III — Under-insured for BI: Annual Gross Revenue = ₹1 Cr but Section III SI = ₹50 lakh. Fire causes ₹30L revenue loss. Payout = ₹30L × 50/100 = ₹15L — average clause reduces claim by 50%.

Question 10

How is the Office Package Policy different from the Shopkeepers Insurance Policy — which should my business choose?

Accepted Answer

These two policies are designed for fundamentally different business premises:

Office Package Policy:
→ For: Professional offices, IT firms, corporate offices, banks, law firms, CA offices
→ Eligible premises: Brick + RCC building used for business/clerical/professional activities
→ Valuation: REINSTATEMENT VALUE for all assets (new replacement cost)
→ Electronic Equipment: Dedicated Section VI with data/software coverage
→ Business Interruption: Gross Revenue basis (audited revenue shortfall)
→ Compulsory sections: ONE (Section I only)
→ No SI cap — suitable for large corporate offices

Shopkeepers Insurance Policy:
→ For: Retail shops, showrooms, dealers, shopping complexes
→ Eligible premises: Class A construction retail premises with ≤₹2 Cr building+contents SI
→ Valuation: MARKET VALUE (depreciated) for most assets
→ Electronic Equipment: No dedicated section — electronics covered under general fire/burglary
→ Business Interruption: Working days formula (simpler but less precise)
→ Compulsory sections: TWO (Sections I-B AND II)
→ ₹2 Crore SI cap for building + contents

Choose Office Package Policy if:
→ Your premises is an office (no retail sales to customers)
→ You have expensive IT equipment (servers, computers) that need full replacement coverage
→ Your business revenue is large enough to need Gross Revenue-based BI
→ You are a tenant in a commercial office building

Choose Shopkeepers Policy if:
→ You sell goods/products directly to customers from your premises
→ Your combined building + contents value is under ₹2 crore
→ You are a trader, dealer, or retailer of any kind

Complete Office Protection — Building· Equipment· Data· Revenue· Staff· Liability —Office Package Policy, the insurer

What is the insurer's Office Package Policy?

Office Definition & Eligibility — Confirmed from IRDAI Policy Wording

Why Reinstatement Value Matters — The Key Advantage

Fire & Allied Perils

Electronic Equipment

Reinstatement Value

Business Interruption

Fidelity Guarantee

Business Equipment Breakdown

10 Sections for Complete Office Protection

Section I

Section II

Section III

Section IV

Section V

Section VI

Section VII

Section VIII

Section IX

Section X

Reinstatement Value — Why You Get Full Replacement Cost

📉 Market Value (Other Policies)

✅ Reinstatement Value (Office Package Policy)

🔢 Reinstatement Value Calculator — See Your Financial Advantage

Market Value Policy Payout

Office Package Policy Payout

Electronic Equipment vs Business Equipment Breakdown

Section VI — Electronic Equipment

Section VII — Business Equipment Breakdown

Which Section? — The Rule of Thumb

Section VI — Data Media & Software Coverage — UNIQUE IN THE SERIES

Business Interruption — Revenue-Based Payout

How Business Interruption Works — Confirmed from IRDAI Wording

📊 Business Interruption Calculator — Section III

Optional Add-ons Under Section I

Terrorism Damage Cover

Loss of Rent (Building Owner)

Alternative Accommodation Rent

🏢 Owner-Occupant Office

🏢 Tenant Office

Who Qualifies for the Office Package Policy?

Eligible Office Types

NOT Eligible for Office Package Policy

The 30-Day Unoccupied Rule — Critical for Work-from-Home Offices

Key Exclusions — Confirmed from IRDAI Wording

🚨 Work-from-Home Warning — 30-Day Unoccupied Coverage Lapse

30-Day Countdown Begins When Office Is Empty

Written Approval Required Before Day 30

Call 022 4302 0000 Before Extended Office Closure

Terrorism (Base Policy)

War & Nuclear

Sec II — No Forced Entry

Sec II — 30-Day Vacancy

Sec IV — No FIR Within 12 Hours

Sec IV — Pickpocketing & Mysterious Disappearance

Sec VI — Pre-existing Defects

Sec VI — Consumables

Sec VI — Unauthorised Repairs

Sec VI — No Backup = No Data Recovery

Sec IX — Commission Agents

Wear & Tear / Gradual Deterioration

Claim Process — 6 Steps

Step 1 — Emergency Actions

Step 2 — Notify the insurer

Step 3 — Document & Preserve

Step 4 — Submit Claim Form

Step 5 — Surveyor Assessment

Step 6 — Settlement

Section-Specific Claim Documents

Frequently Asked Questions

OPP Enquiry Form — Office Protection Quote

🏢🛡️ Protect Your Office, Equipment, Data & Revenue — 10 Sections at Reinstatement Value

Complete Office Protection — Building· Equipment· Data· Revenue· Staff· Liability —
Office Package Policy, the insurer