Understanding Impact Damage Peril in Fire Insurance: Risks, Types & Claim Insights
27 Nov 2025
Understanding Perils covered under Fire Insurance
Impact Damage
Impact Damage is one of the 12 standard perils covered under a Fire Insurance policy, representing forceful consequences of sudden collisions like vehicle crashing into the insured property, machinery toppling over, or falling objects striking — impact damage is abrupt, often severe, and rarely predictable.
Types of Impact Damage
Vehicle Impact Damage: Damage caused by a third-party vehicle crashing into insured premises like a delivery truck colliding into the business premises.
Falling Object Impact: Damage from objects like trees and neighbor’s building falling onto insured property. Animal Impact: Damage caused by animals like a bull running into a shop damaging the property or stock.
Claim Scenario
One of our MSME customers who runs a Hardware & Electrical shop in Jhunjhunu reported a Stock damage claim. A truck went out of control and crashed into the shop damaging structure and stock, resulting in considerable financial losses.
Concerned bank ensured the stock was covered while disbursing the loan — which helped the customer in recovering these losses and continue his business and moving Bank’s assets too.
- Premium Paid: ₹3,612
- Claim Settled: ₹4,93,178
FIRE Insurance – More than Fire, It’s total protection & Peace of Mind
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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Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
