Q: What are the compulsory sections — what must every VSP policy include?

Every Vyapar Suraksha Policy must include: COMPULSORY (cannot be excluded): → Section IB: Contents (stocks, furniture, fittings) against fire and allied perils → Section II: Burglary and Housebreaking (contents of premises against burglary) Plus, you must choose AT LEAST 2 MORE sections from the remaining options to complete the policy (minimum 4 sections total). Why these two are compulsory: Fire (Section IB) and Burglary (Section II) are the two most fundamental and common risks for any retail business. These form the core of the VSP and all other sections build on this foundation. Note: Section IA (Building/structure) is separate from Section IB (Contents). If you own the building (as opposed to renting), you should also take Section IA. If you're a tenant, Section IA is less relevant as the building is the landlord's responsibility. Important: The Sum Insured for Section II (Burglary) must be the same as the SI for Section IB (Contents). You cannot insure contents for more under burglary than under fire.

Q: What premium discounts are available and how do I maximise my VSP discount?

VSP's discount structure rewards comprehensive coverage: 4 or more sections → 15% discount 6 or more sections → 25% discount The compulsory sections (IB + II) count toward the total. So: → IB + II + any 2 more = 4 sections = 15% discount (minimum recommended) → IB + II + any 4 more = 6 sections = 25% discount (maximum discount) Best combination for 25% discount (6 sections): 1. Section IA — Building (fire, if you own the building) 2. Section IB — Contents (COMPULSORY) 3. Section II — Burglary (COMPULSORY) 4. Section VIII — Personal Accident (owner + family) 5. Section IX — Fidelity Guarantee (employee fraud) 6. Section X — Public Liability (customer injury claims) Total: 6 sections = 25% premium discount If you also have: Business Interruption (Section XI) need — add it to make 7 sections (still 25% discount, no additional discount above 6). The 25% discount on premium effectively means your additional covers (PA, Fidelity, Liability) are significantly cheaper per section than buying them as separate policies. Bundling is always the cost-effective choice.

Question 1

What is the Vyapar Suraksha Policy — who is it designed for and why is ₹2 crore the threshold?

Accepted Answer

The Vyapar Suraksha Policy (VSP) is the insurer's comprehensive bundled insurance package for LARGE TRADERS — businesses whose combined building and contents Sum Insured EXCEEDS ₹2 crore.

The ₹2 crore threshold is the boundary between two product categories:
→ Under ₹2 crore: the insurer Shopkeepers Insurance (same 11-section structure, but without the large-trader specific features)
→ Over ₹2 crore: Vyapar Suraksha Policy (with off-site godown, local transit, frozen food, and temporary stock removal features)

the insurer's target customers for VSP: Retail chains, Shopping Malls, Arcades, Showrooms, Hypermarkets, and Business junctions.

The ₹2 crore threshold exists because larger retail operations have fundamentally different risk profiles — multiple locations, stock in transit, cold chain requirements, higher employee counts (fidelity risk), and more complex public liability exposure. The VSP is designed to address these specific needs.

Question 2

What are the compulsory sections — what must every VSP policy include?

Accepted Answer

Every Vyapar Suraksha Policy must include:

COMPULSORY (cannot be excluded):
→ Section IB: Contents (stocks, furniture, fittings) against fire and allied perils
→ Section II: Burglary and Housebreaking (contents of premises against burglary)

Plus, you must choose AT LEAST 2 MORE sections from the remaining options to complete the policy (minimum 4 sections total).

Why these two are compulsory: Fire (Section IB) and Burglary (Section II) are the two most fundamental and common risks for any retail business. These form the core of the VSP and all other sections build on this foundation.

Note: Section IA (Building/structure) is separate from Section IB (Contents). If you own the building (as opposed to renting), you should also take Section IA. If you're a tenant, Section IA is less relevant as the building is the landlord's responsibility.

Important: The Sum Insured for Section II (Burglary) must be the same as the SI for Section IB (Contents). You cannot insure contents for more under burglary than under fire.

Question 3

How does VSP differ from the insurer Shopkeepers Insurance — when should I choose VSP?

Accepted Answer

Both products share the same 11-section architecture, but differ in:

SI threshold:
→ Shopkeepers Insurance: up to ₹2 crore (building + contents combined)
→ VSP: over ₹2 crore — your eligibility is determined by your actual SI

Unique VSP features (not in Shopkeepers Insurance):
1. Off-site Godown cover — extend Sections I + II to a separate storage godown
2. Local Transit of Goods — cover stock moving in your own vehicle (max 0.5% of IB SI)
3. Frozen Food Stocks — temperature change damage covered in Section IB
4. Temporary Removal of Stock — stock at exhibition/trade fair covered (max 10% of IB SI)

When to choose VSP:
→ Your combined building + contents SI exceeds ₹2 crore (mandatory eligibility)
→ You have a separate off-site godown/warehouse
→ You move stock between locations in your own vehicle
→ You carry frozen/cold food stocks
→ You participate in trade fairs or exhibitions with your stock
→ Your risk complexity justifies the large-trader product

If your SI is below ₹2 crore, VSP cannot be issued — Shopkeepers Insurance is the appropriate product.

Question 4

What is the Off-site Godown cover and how do I include it in my VSP?

Accepted Answer

Large retailers often maintain separate storage godowns or warehouses some distance from their main shop — where they store bulk stock before bringing it to the showroom/shop floor.

The problem without Off-site Godown cover:
Your standard VSP Sections I and II cover only the insured premises address. If your godown is at a different address, stock stored there is NOT covered under the basic VSP. A fire or burglary at the godown = uninsured loss.

How to add Off-site Godown cover:
→ Declare the off-site godown address to the insurer at the time of policy issuance
→ Provide the SI for stock typically held at the godown
→ Pay additional premium for extending Sections I and II to this location
→ Both fire (Section I) and burglary (Section II) extend to the godown

What's covered at the godown:
→ Fire and allied perils (Section IA/IB extended)
→ Burglary and housebreaking (Section II extended)
→ Stock in trade stored at the godown

What's NOT covered under godown extension:
→ The godown building itself (if you don't own it)
→ Stock in transit TO the godown (that's the Local Transit cover)

Call 022 4302 0000 for the current premium rate for off-site godown extension based on your godown's location, size, and stock value.

Question 5

How does the Local Transit of Goods cover work — what qualifies?

Accepted Answer

The Local Transit cover under VSP's Section IB covers stock while it is physically moving from your off-site godown to your main shop premises in your own registered goods vehicle.

What qualifies:
→ Own registered goods vehicle (not hired or third-party transport)
→ Movement from godown to shop only (not supplier to godown)
→ Standard goods — everyday retail stock
→ Maximum cover: 0.5% of the SI under Section IB per transit

What is EXCLUDED from Local Transit cover:
→ Gold, jewellery, and precious items
→ "High value items" as defined by the insurer
→ Third-party transport vehicles
→ Inter-city or long-distance transit (this is local transit only)
→ Stock being returned to supplier

Example: If your Section IB SI is ₹5 crore, the maximum Local Transit cover per trip is 0.5% × ₹5 crore = ₹2.5 lakh. If a transit vehicle fire destroys ₹3 lakh of stock in one trip, you would recover ₹2.5 lakh (the maximum per transit).

Call 022 4302 0000 for the additional premium rate for Local Transit cover based on your transit frequency and typical per-trip stock value.

Question 6

Does VSP cover frozen food stocks if my refrigeration fails — what exactly is covered?

Accepted Answer

YES — Vyapar Suraksha Policy's Section IB specifically includes cover for damage to frozen food stocks for sale in the shop due to change in temperature.

What is covered:
→ Frozen food stocks intended for retail sale in your shop
→ Damage/spoilage arising from a CHANGE IN TEMPERATURE
→ Caused by refrigeration unit failure, power cut, or cold chain breakdown

Coverage is inbuilt under Section IB — no additional premium is required specifically for the frozen food temperature cover (though Section IB itself must be operative).

Critical for:
→ Supermarkets and hypermarkets (ice cream, frozen foods, dairy)
→ Cold drink and beverage retailers
→ Frozen fish, meat, and poultry retailers
→ Any large retail format with significant cold storage inventory

Example: A 12-hour power outage causes your supermarket's entire frozen food section (₹15 lakh of stock) to thaw and spoil. Under standard fire/burglary policies, this is not covered — no fire occurred, no burglar entered. VSP's Section IB frozen food cover would respond to this loss.

Documentation needed for frozen food claim: Temperature log records, power company outage certificate, refrigeration service report, stock inventory at time of loss. Notify the insurer immediately on discovering the spoilage.

Question 7

How does the Fidelity Guarantee section protect large retailers from employee theft and fraud?

Accepted Answer

Section IX (Fidelity Guarantee) covers direct financial losses to your business caused by fraud or dishonesty committed by your OWN SALARIED EMPLOYEES.

What Fidelity covers:
→ Employee theft of cash (cashier skimming, till manipulation)
→ Employee theft of stock (inventory theft, false write-offs)
→ Employee fraud (false invoicing, supplier kickbacks)
→ Any direct financial loss caused by provable employee dishonesty

Why it's especially critical for large retailers:
→ Large retail employs many cash-handling staff at high transaction volumes
→ Inventory is spread across large floor areas — easier to pilfer
→ Employee fraud in purchasing/receiving can go undetected for months
→ Fidelity is DIFFERENT from Burglary Section II (burglary covers external theft; fidelity covers internal employee dishonesty)

Key rules for Fidelity claims:
→ Must be discovered and reported within 12 months of the act
→ Must file police complaint against the employee
→ Must dismiss the employee and attempt recovery
→ Full audit trail of losses required
→ Partners, directors, and business owners are NOT covered (only salaried employees)

Practical recommendation: Conduct monthly spot audits, maintain daily cash reconciliation records, and use CCTV — not just for security but to strengthen Fidelity claims documentation.

Question 8

What premium discounts are available and how do I maximise my VSP discount?

Accepted Answer

VSP's discount structure rewards comprehensive coverage:

4 or more sections → 15% discount
6 or more sections → 25% discount

The compulsory sections (IB + II) count toward the total. So:
→ IB + II + any 2 more = 4 sections = 15% discount (minimum recommended)
→ IB + II + any 4 more = 6 sections = 25% discount (maximum discount)

Best combination for 25% discount (6 sections):
1. Section IA — Building (fire, if you own the building)
2. Section IB — Contents (COMPULSORY)
3. Section II — Burglary (COMPULSORY)
4. Section VIII — Personal Accident (owner + family)
5. Section IX — Fidelity Guarantee (employee fraud)
6. Section X — Public Liability (customer injury claims)
Total: 6 sections = 25% premium discount

If you also have: Business Interruption (Section XI) need — add it to make 7 sections (still 25% discount, no additional discount above 6).

The 25% discount on premium effectively means your additional covers (PA, Fidelity, Liability) are significantly cheaper per section than buying them as separate policies. Bundling is always the cost-effective choice.

Question 9

How does Business Interruption (Section XI) work — how is the loss of profit calculated?

Accepted Answer

Section XI (Business Interruption / Loss of Profit) compensates your business for the income you LOSE when a fire (or other insured peril under Section I) forces you to close or partially close your business while repairs are made.

How it triggers:
→ Fire or other Section I insured peril damages your premises
→ You cannot fully operate your business during repairs
→ Section XI compensates for the resulting PROFIT LOSS

Prerequisite:
→ BOTH Section I (fire) AND Section II (burglary) must be operative
→ Section XI cannot be purchased without these two sections

What is calculated:
→ Gross Profit loss during the "Period of Indemnity" (the time needed to restore business to normal)
→ Period of Indemnity is specified at policy inception (typically 6 or 12 months)
→ Based on historical turnover and profitability records

Example: A showroom fire causes 3 months of closure for repairs. During this time, the business loses ₹30 lakh in gross profit that it would have earned. Section XI compensates this ₹30 lakh loss — helping the business pay salaries, rent, and loan EMIs during the forced closure.

For SI calculation under Section XI, you need to declare your annual gross profit to the insurer. Call 022 4302 0000 for guidance on correctly insuring Business Interruption for your specific business model.

Question 10

Can I cover multiple shop locations under one VSP policy?

Accepted Answer

VSP can typically be structured to cover multiple locations under one policy — this is particularly relevant for retail chains and businesses with several branches.

Multi-location VSP approach:
→ Each insured location (branch/shop) is listed separately in the policy schedule
→ Each location has its own Sum Insured for each applicable section
→ Premium is calculated on each location's SI and sections
→ Claims are settled on a per-location basis

Benefits of multi-location VSP:
→ Single policy administration (one renewal, one insurer, one premium)
→ Discount for section selection applies across the policy
→ Consistent coverage terms across all branches

Multi-location considerations:
→ All locations must be declared at policy inception
→ If a new location is opened mid-year, it must be added by endorsement
→ Each location's SI is individually assessed for its specific risk
→ Location-specific risks (e.g., one branch in a flood-prone area) may have different sub-conditions

Call 022 4302 0000 to discuss your specific multi-location VSP requirement — our commercial insurance specialists can help structure the right coverage for your entire retail network.

Business Type	Fire (I)	Burglary (II)	Money (III)	Fidelity (IX)	Liability (X)	Business Int. (XI)	Frozen (IB)
Retail Chain / Mall	●● Essential	●● Essential	● Important	● Important	●● Essential	●● Essential	○ Optional
Supermarket / Hypermarket	●● Essential	●● Essential	●● Essential	●● Essential	● Important	●● Essential	●● Essential
Electronics Showroom	●● Essential	●● Essential	● Important	● Important	● Important	● Important	— Not typical
Fashion Showroom	●● Essential	●● Essential	○ Optional	○ Optional	● Important	○ Optional	— Not typical
Auto Dealership	●● Essential	●● Essential	●● Essential	● Important	●● Essential	● Important	— Not typical

Parameter	VSP — Vyapar Suraksha	the insurer Shopkeepers	BLUS (Bharat Laghu)	BSUS (Bharat Sookshma)
For	Large traders — retail chains, malls, showrooms	Small shopkeepers	Small-medium enterprises	Micro enterprises
SI Threshold	Over ₹2 crore	Up to ₹2 crore	₹5 crore to ₹50 crore	Up to ₹5 crore
Policy Type	Multi-section package (11 sections)	Multi-section package (11 sections)	IRDAI standardised fire policy	IRDAI standardised fire policy
Fire Cover	✔ Sections IA + IB	✔ Sections IA + IB	✔ Fire + allied + add-ons	✔ Fire + allied perils
Burglary Cover	✔ Section II	✔ Section II	✘ Not included	✘ Not included
Money Insurance	✔ Section III (optional)	✔ Section III (optional)	✘ Not included	✘ Not included
PA for Owner	✔ Section VIII (optional)	✔ Section VIII (optional)	✘ Not included	✘ Not included
Public Liability	✔ Section X (optional)	✔ Section X (optional)	✘ Not included	✘ Not included
Fidelity Guarantee	✔ Section IX (optional)	✔ Section IX (optional)	✘ Not included	✘ Not included
Off-site Godown	✔ Available (add'l premium)	✘ Not available	✘ Not in standard scope	✘ Not in standard scope
Frozen Food Cover	✔ Inbuilt in Section IB	✘ Not available	✘ Not included	✘ Not included
Premium Discount	15% (4 secs) or 25% (6+ secs)	15% or 25% (same structure)	As per IRDAI tariff	As per IRDAI tariff
Best for	Large retail — chains, malls, showrooms, hypermarkets	Single-location small shop	Medium factory/industrial unit	Micro/small manufacturing

Comprehensive Business Protection for Large Traders —Fire· Burglary· Money· Liability + MoreVyapar Suraksha Policy, the insurer

What is the Vyapar Suraksha Policy?

🤔 Which the insurer Product Do You Need — VSP or Shopkeepers Insurance?

Vyapar Suraksha Policy (This Page) — For Large Traders

the insurer Shopkeepers Insurance — For Small Traders

Up to 11 Sections

Off-site Godown Cover

Local Transit of Goods

Frozen Food Stocks

Up to 25% Discount

the insurer — PSU

11 Sections — Compulsory + Optional

Section Selection Rules

Section IA

Section IB

Section II

Section III

Section IV

Section V

Section VI

Section VII

Section VIII

Section IX

Section X

Section XI

Premium Discount Structure — Choose More, Pay Less Per Section

4 Unique Features — Only in Vyapar Suraksha Policy

Off-site Godown Cover

Local Transit of Goods

Frozen Food Stocks — Temperature Cover

Temporary Removal of Stock

Cold Chain Risk — A ₹Crore Problem for Modern Retail

Who is VSP For? — Large Retail Business Types

Retail Chains

Shopping Malls

Arcades / Complexes

Showrooms

Hypermarkets

Supermarkets

Electronics Stores

Large Pharmacies

Build Your Vyapar Suraksha Policy

🏗️ Select Your VSP Sections

Sec IA — Building

Sec IB — Contents

Sec II — Burglary

Sec III — Money

Sec IV — Pedal Cycle

Sec V — Plate Glass

Sec VI — Signs

Sec VII — Baggage

Sec VIII — PA

Sec IX — Fidelity

Sec X — Liability

Sec XI — Biz Int.

Key Exclusions — By Section

Electrical Equipment Damage

War and Nuclear Perils

Wilful Damage by Insured

Consequential Loss

Money and Valuables

Employee Theft

Unoccupied Premises

Money: 2-Day Discovery Limit

Fidelity: Employee as Principal

Fidelity: 12-Month Discovery

Liability: Employee Injury

Liability: Contractual Obligations

Liability: Independent Settlement

Claim Process — Five Tracks for Five Risk Types

🔴 Fire Claim (Section I)

🟤 Burglary Claim (Section II)

🟡 Money Claim (Section III)

🟠 Fidelity Claim (Section IX)

🟢 Liability Claim (Section X)

Critical — Never Settle Liability Claims Without the insurer's Consent

How VSP Compares — the insurer's Commercial Insurance Products

Frequently Asked Questions

Vyapar Suraksha Policy — Business Enquiry Form

🏪🛡️ Comprehensive Business Protection for India's Large Traders

Comprehensive Business Protection for Large Traders —
Fire· Burglary· Money· Liability + More
Vyapar Suraksha Policy, the insurer