Understanding Lightning Peril in Fire Insurance: Coverage, Risks & Claim Insights
13 Nov 2025
Understanding Perils covered under Fire Insurance - Lightning Peril
Among the 12 standard perils covered under a Fire Insurance policy, Lightning stands out as a natural force with unpredictable power. Fire insurance safeguards the insured property against damage directly caused by lightning strikes.
Lightning strikes in India have increased by 400% in 6 years. Source: downtoearth.org.in
How Lightning Peril Works
When a lightning strike hits an insured property, it may cause:
- Fire or Explosion in combustion materials
- Physical damage to roofs, walls or chimneys
- Electrical Surges damaging wiring, control panels and connected equipment
Key benefits of Insuring
Operational Continuity: Covers losses from electrical or structural damage that disrupt business operations Financial Protection: Shields against costly repairs or replacements from lightning-related incidents Comprehensive Coverage: Safeguards buildings, machinery, and inventory—offering peace of mind during storm seasons
Claim Scenario
A customer from Kolkata who runs a Signage Board business reported damage to his shop's structure due to Lightning in the month of July’25. The shop was damaged partially causing interruption to his business.
Premium Paid –Rs 8,470/-
Sum Insured –Rs 68,94,000/-
Post-inspection a survey was done and the claim of Rs 7,00,000 was settled towards repair of the shop’s roof within a month and the customer was able to resume his business operations post the repair.
Risk Management
- Proper grounding
- Lightning rods and air terminals
- Surge protection devices
Exclusions
- Indirect causes –power failure, voltage fluctuation etc.
- Gradual electrical wear, corrosion or negligence
- Intentional acts or pre-existing defects
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.
Read morePopular Infographics
Related Infographics
.jpg)
Understanding Impact Damage Peril in Fire Insurance: Risks, Types & Claim Insights
Understanding RSMD Peril in Fire Insurance: Claims, Coverage & Real Case Example
Understanding STFI Peril in Fire Insurance: Meaning, Coverage & Real Claim Example
.jpg)
-
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.
