Rakshit Financial ServicesInsurance broker · Udaipur

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Bhiwadi and Alwar

Insurance checklist for engineering and fabrication

Bhiwadi. Job-shop work, owned plant, and contracts that frequently specify cover the unit has not read. Every line below is something to check against your own policies. 2 of them rest on a specific statute, named alongside with the condition it applies under.

StatusCoverWhat it answers for
Required by lawMotor third-partyThird-party cover is compulsory for any vehicle used in a public place.Applies when: The business owns or operates any vehicle.Motor Vehicles Act, 1988
Required by lawWorkmen's / Employees' CompensationEmployer liability for injury, occupational disease or death at work.Applies when: Employing workers in a Schedule II occupation — factories, construction, mines, transport, docks and plantations among them.Employees' Compensation Act, 1923
StandardBurglary and housebreakingStock and contents against forcible entry. Fire does not cover theft.Applies when: Stock or valuable contents held on the premises.
StandardMachinery breakdownCNC and press plant.Applies when: Owned machinery.
StandardMarine cargo / inland transitFabricated goods outbound.Applies when: Any despatch.
StandardStandard fire and special perilsBuildings, plant, stock and contents against fire and the named perils. Almost always the first policy a commercial client buys, and usually a condition of any secured borrowing against the asset.Applies when: Any owned or leased premises, plant or stock.
Worth askingCyberBreach response, business interruption from an attack, and third-party liability. Awareness among Indian SMEs is very low, which makes it a conversation nobody else is having.Applies when: Any business holding customer data or dependent on systems.
Worth askingErection all risks / contractors all risksSite work away from the works. The contract usually says who must carry it, and the answer is often the fabricator.Applies when: Any installation or site erection undertaken.
Worth askingGroup medicalHospitalisation cover for employees and usually their dependants. The policy an owner renews with the most anxiety, so it is the easiest door into an account somebody else holds.Applies when: Typically from around 20 employees, though insurers differ.
Worth askingGroup personal accidentAccident cover for staff, on duty and often off it. Frequently confused with employees' compensation, which it does not replace.Applies when: Any employer — but it is a benefit, not a statutory substitute.
Worth askingProduct liabilityInjury or damage caused by a component after supply.Applies when: Supplying components to other manufacturers.

Written by Parul Bhargava · Founder and Principal Advisor, advising since 2004

Frequently asked questions

Which of these covers are actually compulsory?

For engineering and fabrication, the covers resting on a statute are: Motor third-party, Workmen's / Employees' Compensation. Each applies only under the condition stated beside it, so whether it binds a particular business is a question of fact, not of trade. The acts involved are Employees' Compensation Act, 1923; Motor Vehicles Act, 1988.

Is a fire policy enough on its own?

Rarely. A fire policy answers for the named perils on the property described in it. It does not cover theft, it does not follow goods onto a lorry, it does not answer for machinery that fails electrically, and it does not replace the profit lost while the business is stopped. Those are separate covers, listed above.

What should I bring to have my cover checked?

The policy schedule and the full policy wording, not just the certificate. The schedule shows the sum insured and the premium; the wording is what decides a claim. RFS reads both at no charge and will tell you what it finds whether or not you place anything through us.

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This page names no premium and no rate, because both depend on your own values, wordings and claims history. To have your actual policies read against this list by an IRDAI-registered broker, free: request a callback or WhatsApp +91 92514 56334.