Burglary Insurance

Burglary Insurance is one of the major classes of business underwritten in the miscellaneous department
and accounts for a sizeable portion of the department’s premium income.
For the business house Burglary insurance is as essential as Fire insurance, as it enables them to recoup
the losses suffered by them consequent on burglary or house breaking. In addition to the burglary policy,
other types of policies giving wider covers have also been devised by the burglary department. The main
types of policies are as follows:

(i) Business Premises Policy,
(ii) Private Dwelling Policy,
(iii) Jewellary and Valuable Policy,
(iv) All Risk Policy, and
(v) Money in Transit Policy

Definitions

Burglary
The criminal law of the country does not speak of an offence called burglary. Hence it becomes necessary
for the insurers to lay down in the policy the definition of the term. As normally understood burglary is:

(a) Theft of property from the premises following upon felonious entry of the said premises by violent and
forcible means.

(b) Theft by a person in the premises who subsequently breaks out by violent and forcible means provided
there shall be visible marks made upon the premises at the place of such entry or exit by tools, explosives,
electricity or chemicals. Use of force may be against property and person.
Theft
Indian Penal Code in Section 378 defines theft as follows: “whoever intending to take is honestly any
movable property out of the possession of any person without the consent of that person or of any person
having for that purpose authority, moves that property in order to such taking is said to commit theft.”

House-breaking

The word in practice is equal to ‘Burglary’. Section 445 of the Indian Penal Code has laid down a definition of
the term.
A person is said to commit housebreaking who commits house trespass if he effects his entrance into the
house (or any part of it), or if being in the house (or any part of it) for the purpose of committing an offence,
or having committed an offence therein he quits the house, such entrance or exit being made by use of force
in one of the six ways as described in the Indian Penal Code.

Robbery

Section 390 of the Indian Penal Code laid down, “If in order to the commission of or in committing of the theft
or in carrying away property obtained by theft, the offender, for that end, voluntarily causes (or attempts to
cause) to any person death or hurt or wrongful restraint or fear of instant death or hurt or wrongful restraint or
fear of instant death or hurt or wrongful restraint”.

Dacoits

Section 391 of the Indian Penal Code states dacoits as “where five or more persons conjointly commit or
attempt to commit a robbery or are present and aid such commission or attempt, every one of them is said to
commit dacoits”

Coverage

Business premises are generally covered against burglary and house breaking only. Mere theft without the
use of force and violence is not covered, robbery and dacoits being aggravated forms of theft.
It also covers risk of holdup. Burglary and house breaking fall within the scope of this cover. Under policies
issued for private dwellings, the contents are covered against burglary, house-breaking and theft risks.
Similarly Jewellery and valuables are also insured in the same manner.

Money in Transit

Policies, as a matter of rule, cover robbery, hold-up and dacoits in addition to burglary, housebreaking and
theft.