How Fire Insurance Covers Explosion & Implosion Risks
04 Dec 2025
Understanding Perils Covered Under Fire Insurance Explosion / Implosion Peril
When a chemical reaction or gas leak causes an explosion or implosion, it can lead to a fire that spreads rapidly and causes extensive damage to the insured property. The Explosion/Implosion peril under a Fire Insurance Policy covers such losses.
Claim Scenario
One of our MSME customers runs a manufacturing unit in Ahmedabad. Due to a malfunction, the boiler in the unit exploded, resulting in a fire that damaged the building, plant, and machinery.
The customer’s property was insured under a Fire Insurance Policy, which covered the loss.
- Premium Paid: ₹8,647
- Claim Settled: ₹25,31,330
This insurance coverage helped the customer restart business operations after a major disruption and prevented the loan account from turning into an NPA.
Key Steps Involved in the Claim Process
- Report the incident immediately
- Document the damage
- Cooperate with the insurer’s investigation
- Evaluation and claim settlement
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.
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