Property Insurance
Burglary and Theft Insurance
Burglary and Theft Insurance provides financial protection against loss or damage to property and assets due to burglary, housebreaking, robbery, or theft. This insurance is essential for businesses, retailers, warehouses, and even homeowners who want to safeguard their valuable assets, stock, cash, and equipment from theft-related risks.
Burglary Insurance vs. Theft Insurance
| Aspect | Burglary Insurance | Theft Insurance |
|---|---|---|
|
Definition |
Covers loss due to theft involving forcible and violent entry or exit from premises. |
Covers loss due to stealing, with or without force or violence. |
|
Force Requirement |
Yes – forcible and violent entry/exit must be proven. |
No – covers even stealthy or non-violent theft. |
|
Coverage Area |
More limited – applicable only when burglary involves violence or break-in. |
Broader – includes shoplifting, pickpocketing, insider theft, etc. |
|
Claim Requirement |
Must prove forcible entry (e.g., broken lock, smashed door). |
No need to prove forced entry, but theft must be reported and documented. |
|
Ideal For |
Businesses and homes where forced burglary risk is high. |
Retail stores, cash counters, and movable property where sneaky theft is likely. |
|
Relevant (Old) IPC Section |
Section 445: Definition of House-breaking (burglary),
Section 380-395: Various burglary & theft offences. |
Section 378: Theft
Section 379: Punishment for Theft. |
|
Relevant (New) BNS Section |
Section 327: Burglary/House-breaking related offences. |
Section 302: Theft and allied offences under Bharatiya Nyaya Sanhita. |
Examples
| Scenario | Type | Covered by |
|---|---|---|
|
A shop door is broken and goods are stolen. |
Burglary |
Burglary Insurance |
|
A wallet is stolen by a pickpocket. |
Theft |
Theft Insurance |
|
Robbery with violence at gunpoint |
Robbery (not theft) |
Requires Special Cover |
|
An employee stealthily steals cash from a drawer. |
Theft (Internal) |
May need Crime Insurance |
|
Laptop stolen from an unlocked room. |
Theft |
Theft Insurance |
|
Locked showroom broken into overnight. |
Burglary |
Burglary Insurance |
Why is Burglary and Theft Insurance Essential?
- Protection Against Financial Loss
- Essential for Businesses with Physical Inventory
- Covers Damage During Forced Entry
- Peace of Mind for Business Owners & Homeowners
- Complements Fire & Property Insurance
Important Things You Should Note
- Definition of Burglary Matters – The policy covers theft only if there is forced or violent entry into the premises.
- Not All Thefts are Covered – Simple thefts without force (e.g., employee pilferage, fraud) are usually not covered.
- Cash Coverage is Limited – Theft of cash in safes or registers is covered only up to the limit specified in the policy.
- Valuation of Stolen Goods – Claims are settled based on market value or replacement cost of stolen items.
- Excess/Deductible Applies – Policyholders may have to bear a part of the loss, depending on the policy terms.
What is Covered & What is Not Covered?
What is Covered?
- Loss of Stock, Equipment, and Valuables – Covers burglary-related losses for business inventory, furniture, machinery, and valuables.
- Damage to Premises During Forced Entry – Covers repairs for broken locks, doors, windows, and security systems.
- Theft of Cash in Locked Safe – If the cash is stored securely in a locked safe or register, it may be covered.
- Theft from Shops, Warehouses, & Factories – Coverage applies to business premises, showrooms, and industrial units.
- Expenses for Strengthening Security – Some policies reimburse security enhancement costs after a burglary.
What is Not Covered (Exclusions)?
- Theft Without Forced Entry – If there are no signs of breaking in, claims may be denied.
- Theft by Employees – Employee dishonesty, fraud, or internal pilferage is usually excluded.
- War, Riots, & Civil Unrest – Damage or losses due to terrorism, riots, or war-related activities are not covered.
- Jewellery & Precious Items (Unless Declared) – High-value items like gold, artwork, and antiques require special coverage.
- Theft Due to Negligence – If security measures were not in place (e.g., unlocked doors, weak security), the claim may be denied.
Frequently Asked Questions (FAQs)
How is a burglary insurance claim processed?
The insured must report the burglary to the police and provide the FIR, loss details, and proof of ownership of stolen items to the insurer. The insurer will assess the claim based on investigation reports.
Does this policy cover home burglaries?
Yes, some insurers offer Burglary Insurance for homeowners, covering theft of household goods and valuables.
Can I cover cash stored outside a safe?
Cash stored in an unlocked drawer or open area is not covered. However, locked safes or registers may be covered up to a specified limit.
What is the difference between Burglary Insurance and Theft Insurance?
Burglary Insurance covers theft that occurs with forced entry or breaking in.
Theft Insurance covers all thefts, including those without forced entry (e.g., shoplifting, pickpocketing).
Can businesses add extra security measures to reduce premiums?
Yes, insurers may offer discounts if the premises have CCTV, alarm systems, security guards, or reinforced locks.
