the insurer's Shopkeepers Insurance Policy bundles 11 sections — fire, burglary, money (transit/safe/till), pedal cycle, plate glass, neon sign, baggage, personal accident, fidelity guarantee, liability, and business interruption — into one commercial package for shops with SI up to ₹2 Crore. Both Section I-B and II are compulsory. Minimum 4 sections required.
the insurer Miscellaneous Insurance· 11 Sections· Shopkeepers & Traders· ≤₹2 Crore
the insurer's Shopkeepers Insurance Policy is a comprehensive bundled commercial package for small-to-medium retail shops — covering every risk a shopkeeper faces: fire, theft, cash, staff fraud, business closure, and more. One policy. Eleven sections. Complete shop protection.
Building and/or contents against fire, lightning, storm, flood, RSMD, earthquake — the compulsory core section for all shops.
Section I — CompulsoryAll shop contents stolen by forced violent entry. Mandatory for every SIP policy — protects stock, fixtures, equipment.
Section II — CompulsoryThree zones: cash in transit (₹50K/carry), safe overnight, and till during business hours. Complete cash circle protection.
Section IIIDirect financial loss due to fraud or dishonesty by your full-time salaried employees. 6-month discovery period.
Section IXLoss of trading days when Section I perils close your shop. Formula-based payout for each day your business is shut.
Section XI — UniquePublic liability for customer injuries in your shop + Workmen's Compensation for shop employees injured at work.
Section XAll 11 Sections — Click Any to See Full Details
Both Section I-B and Section II are compulsory. Choose at least 2 more for a minimum policy of 4 sections. 4+ sections = 15% discount. 6+ sections = 25% discount. Click any section tile for full details.
This precise legal definition means: ordinary theft WITHOUT forced entry is NOT covered under Section II. If a thief uses a duplicate key or unlocked door to quietly enter and steal — that is NOT Burglary under this policy. Forced entry (broken lock, smashed window) OR assault/threat against you or your staff IS covered. Understanding this definition determines whether your burglary claim is admitted.
Section III — Three Sub-Sections· Different Limits· Different Rules
Section III is the most structurally complex section in the policy — three sub-sections with three different SI limits, three different triggers, and three different operational rules. Each protects cash in a different physical state.
Section XI — The Only BI Cover in This Product Series
Section XI is the most recently added and most commercially significant section. When a fire or allied peril forces your shop to close, Section XI pays for the trading days lost using a formula-based calculation. First BI cover in this entire the insurer product series.
⚠️ This is an estimate based on the confirmed BI formula. Actual claim settlement depends on surveyor assessment, documented trading records, and actual days the shop was fully closed. SSoni worked example: SI=₹3L, Contents=₹2.5L, Days lost=25, Working days=255 → Net payout ≈ ₹15,931.
Eligible Shops· Ineligible Shops· Class A Construction
The Shopkeepers Policy is designed for small-to-medium retail shops in Class A construction. Certain shop types are explicitly excluded — including jewellery shops (which need Jewellers Block Policy), restaurants, and shops with hazardous goods.
Specific policy available: Jewellers Block Policy. Shopkeepers Policy cannot be issued to jewellery shops — separate specialist coverage required.
"Showrooms and Display Centres where goods are kept purely for display and no sales are being carried out." Must have actual retail sales activity.
Distinct fire tariff rating applies. These establishments have separate classification under Fire Policy 'A' or 'B'. Not eligible for Shopkeepers Policy.
Where manufacturing/processing or dry cleaning/laundering is carried out in the same shop. Processing activity disqualifies the shop.
If the main business is repairing (not selling), the policy may not be granted. Allowed only if repairing is incidental to the main retail selling activity.
"Shops dealing in crackers, fireworks, hay, jute, matches etc. having flash-point below 32°C" where fire tariff B rate exceeds 3.35‰. High-risk goods disqualify the shop. (Presence of hazardous goods up to 1% of SI is permitted.)
"The policy cannot be issued to cover risks where the applicable fire rate (Section I - Shops) is [above threshold]" and where the combined building and contents SI exceeds ₹2 Crore. If your shop value exceeds ₹2 Crore — you need a proper commercial package policy (like Standard Fire and Special Perils + separate Burglary + Fidelity). Call 022 4302 0000 for the right product for larger commercial premises.
Section IX — Direct Pecuniary Loss· Fraud & Dishonesty· Full-Time Employees Only
Section IX covers direct financial loss caused by fraud or dishonesty of your salaried employees. The most critical nuance: commission-based salesmen are explicitly excluded. Only full-time payroll employees qualify.
Per-Section SI Caps + Average Clause
Each section has specific SI caps relative to Section I SI. Understanding these limits prevents surprises at claim time. The average clause applies to most sections — but Section I has a 15% under-insurance grace period unique to Shopkeepers Policy.
| Section | SI Cap / Limit | Valuation Basis | Source |
|---|---|---|---|
| I-A — Building | Declared value of building | Reinstatement cost | the insurer/SSoni |
| I-B — Contents | Declared market value of all contents | Market value | the insurer/SSoni |
| II — Burglary | Same as Section I-B contents SI | Market value | the insurer proposal |
| III-A — Money Transit | ₹50,000 per any one carrying | Actual cash | SSoni + the insurer |
| III-B — Money Safe | 2% of Sec I SI or ₹20,000 (lower) | Actual cash | the insurer proposal |
| III-C — Money Till | 1% of Sec I SI or ₹10,000 (lower) | Actual cash | the insurer proposal |
| IV — Pedal Cycle | Market value of cycle + accessories | Market value | the insurer/SSoni |
| V — Plate Glass | 10% of Sec I SI or ₹1,00,000 (lower) | Market value | the insurer proposal |
| VI — Neon/Glow Sign | 2% of Sec I SI or ₹20,000 (lower) | Market value | the insurer proposal |
| VII — Baggage | 2% of Sec I SI or ₹20,000 (lower) | Market value | the insurer proposal |
| IX — Fidelity Guarantee | 10% of Sec I SI or ₹1,00,000 (lower) | Actual loss | SSoni |
| X — Liability | As specified in schedule | Legal liability | the insurer/the insurer |
If your stock/contents is under-insured by 15% or less, the average clause is waived.
Example: SI = ₹10 Lakh. Actual value = ₹11.5 Lakh. Under-insurance = 13%. Average does NOT apply. Full claim paid up to SI.
This is more generous than standard Fire policy (no such threshold). It acknowledges that small shopkeepers may not perfectly track fluctuating stock values.
If your stock/contents is under-insured by more than 15%, the average clause applies — you become your own insurer for the under-insured portion.
Example: SI = ₹10 Lakh. Actual value = ₹12 Lakh. Under-insurance = 17%. If loss = ₹5 Lakh: Claim = ₹5L × 10/12 = ₹4.17L. You bear ₹83,000 personally.
Average applies to Sections II, IV, V, VI. Not to Section VII (Baggage).
Build Your Policy — See Your Discount Live
Sections I-B and II are compulsory (pre-selected). You must add at least 2 more to reach the minimum of 4 sections. 4 or more sections = 15% discount. 6 or more sections = 25% discount. (the insurer confirmed — higher than Householders Policy's 20%!)
Select at least 2 more sections. Minimum 4 sections are required to issue a Shopkeepers Policy. Policy CANNOT be issued with fewer than 4 sections.
What the Policy Does NOT Cover
Exclusions, and SSoni Surveyors (authorised the insurer surveyor guide).
Riots, strikes, and malicious damage may be covered (RSMD) but terrorism is excluded from the base Section I. RSMD extension available. Check with 022 4302 0000.
War, invasion, civil war, nuclear contamination, radioactive material — excluded across all sections. Standard across all the insurer products.
Burglary definition requires FORCIBLE and VIOLENT entry or assault/threat. Quiet entry using a lost key = NOT covered. The legal definition is strictly applied at claim stage.
"Loss or damage to building due to theft is not covered under Section II." Section II covers only contents, not structural damage from the break-in attempt (that would be covered under Section I if applicable).
Money carried more than 15 miles from insured premises is not covered under Section III-A transit cover.
Money in transit loss discovered after 2 days from occurrence — claim cannot be notified late. 2-day notification window is strictly enforced for transit sub-section.
"Breakage of glass not completely and securely fixed." Loosely placed or removable glass panels are not covered under Plate Glass Section.
"Electrical failure and/or fusing or burning of bulbs and tube-lights from short-circuiting or arching or any other mechanical or electrical breakdown." Normal electrical failure of neon tubes = excluded. Only physical damage covered.
"Unexplained losses or shortage discovered at stock taking are not covered." Fidelity claims require proven employee fraud — general stock discrepancies without evidence of specific employee dishonesty are excluded.
Salesmen and commission agents not on the permanent payroll are explicitly excluded from Fidelity Guarantee coverage. Only full-time salaried employees qualify.
Business Interruption only responds to closures caused by Section I perils. Power cuts, flood not covered under Section I, employee strikes, supplier failure — all excluded from Section XI.
Jewellery shops, restaurants, confectionery with processing, display-only showrooms, hazardous goods shops, gumty/vendor stalls — all ineligible for the Shopkeepers Policy. Wrong policy = no cover.
What to Do When Something Goes Wrong
FIR is mandatory for burglary and fidelity claims. Section I (fire) requires fire brigade report. Business Interruption requires meticulous trading records. The first step is always the same: notify the insurer and stop the loss.
For Sections II (Burglary), III (Money), IX (Fidelity): lodge FIR immediately. "Insured should lodge a complaint with the police in case of theft and take all practical steps to apprehend the guilty persons." No FIR = no claim.
Call 022 4302 0000 the same day. For Section III-A (transit money): must notify within 2 days. For all other sections: immediately upon discovery. Delay in notification can complicate claim processing.
Photograph all damage extensively. Do not move or discard damaged property until surveyor visits. For fire: get fire brigade report. For burglary: photograph entry point, damaged locks, empty shelves. Prepare complete inventory of loss.
Complete the insurer's claim form for the specific section. Attach: FIR/fire report, photographs, purchase invoices/stock records, surveyor request. For Section IX (Fidelity): provide employment records of the employee named.
the insurer appoints a surveyor. Cooperate fully. For stock loss: surveyor may ask for stock register, balance sheet, supplier invoices. "Surveyor should verify all books and records and countersign each book at first and last entry." (SSoni) Do not tamper with records.
Claims settled at market value (most sections) or as per specific section formula (Section XI BI). Average clause applied if applicable. Settlement typically within 30–45 working days of complete documentation. Surveyor's final report is the basis.
Shop Insurance Questions
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By submitting you agree to our Privacy Policy and Terms & Conditions. Shopkeepers Insurance Policy subject to the insurer underwriting. SI cap ₹2 Crore. Class A construction required. Probitas Insurance Brokers Pvt. Ltd.· IRDAI Lic. No. 528.