Property All Risks (PAR) = Industrial All Risks (IAR)

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Property All Risks Insurance

Covers everything except listed exclusions


PAR/IAR is a very “famoust” name amongst other insurance types, because it covers everything (All Risks) except only a few numbers of risks listed as exclusions


Typical Policy Inclusions

·   Coverage for Riots, Strikes, Malicious Damage and Civil Commotions

·   Coverage for Typhoon, Storm, Flood and Water Damage

·   Coverage for Earthquake, Volcanic Eruption and Tsunami

·   Coverage for Landslide and Subsidence


Principal Exclusions

·   War, civil war, terrorism, nuclear, radioactive

·   Delay, loss of market or consequential loss

·   Dishonesty, fraudulent act

·   Mechanical breakdown, overheating of boilers

·   Wear and tear, inherent vice

·   Pollution or contamination


Property Exclusions

·   Property being worked upon / in course of construction

·   Property in transit, road vehicles, watercraft, aircraft

·   Jewelry, precious stone, work of art

·   Timber, crops, animal, bird, fish

·   Land, roads, railways, canals, rigs, well, pipelines, bridges


Additional Benefits (Clauses)

  • All Other Contents
  • Average Relief (85%)
  • Architects, Surveyors and Consulting Engineers
  • Capital addition (10% of TSI)
  • Civil Authorities
  • Claims Preparation
  • Fire Brigades Charges
  • Fire Extinguishing Costs
  • Impact by own vehicle
  • Internal Removal
  • Outbuilding
  • Public Authorities
  • Removal of Debris
  • Reinstatement value
  • Temporary Removal
  • …………..
  • Etc


Deductible is your own risk, amount that will be deducted from your claim payable, for each risks or circumstances usually set out below:


    Fire, Lightning, Explosion, Impact of Aircraft and Smoke : NIL

    Riots, Strikes, Malicious Damage and Civil Commotions : 10% of claim, min Rp10,000,000

    Typhoon, Storm, Flood and Water Damage : 10% of claim

    Landslide and subsidence : 10% of claim 

    Earthquake, Volcanic Eruption and Tsunami : 2.5% of TSI

    Others : Rp1,000,000


Property All Risks


In summary, It covers ………

Fire Lightning Explosion Impact of Aircraft Riots Strikes Malicious act Civil Commotions Earthquake Volcanic Eruption Tsunami Typhoon, Storm Flood, Water Damage Burglary Landslide Impact of vehicle Impact of falling trees Architects Fees Fire Brigades Charges Fire Extinguishing Expenses Removal of Debris   Claim Preparation Costs Other accidental damages and many more


Business Interruptionoptional cover 

It Covers Loss of Gross Profit if during the period of insurance the business carried on by the Insured at the premises specified in the Schedule is interrupted or interfered with in consequence of loss destruction or damage indemnifiable under Section I (Property Damage)

Gross Profit          : Sales – Variable Costs – Savings (Net Profit + Fixed Costs)

Gross Rental        : Rental – Savings

Indemnity Period   : 12 to 24 months


Machinery Breakdown optional cover with sub limit

It Covers any unforeseen, sudden and accidental physical loss, or damage from causes such as defects in casting and material, faulty design, faults at workshop or in erection, bad workmanship, lack of skill, carelessness, shortage of water in boilers, physical explosion, tearing apart on account of centrifugal force, short circuit, storm or from any other cause not specifically excluded in the General or Special Exclusions hereinafter in a manner necessitating repair or replacement.



Every kind of occupation or business can be insured under Property/Industrial All Risks (PAR/IAR) usually with high value to meet the minimum premium required.

Factory Industrial or Manufacturing Risks Warehouses • Ofices •Shophouses Schools Hospitals Hotels •Malls Container Terminal •Ship Yard Entertainment High rise building •Dwelling House and Others



It stars from 0.1% to 0.25%

Off course, it depends on some underwriting factors i.e. occupation, risk location, sum insured, terms and conditions, loss history, etc. indicative ratings on some occupation are:



Indicative Ratings

Industrial / Manufacturing Risks

0.15% – 0.20%

Small or Medium Factory

0.15% – 0.20%















Containers Terminal


Ship Yard




High rise building


Dwelling Houses



0.10% – 0.20%


How to Insure?


You just need to call and advice the occupation, risk location and sums insured, for this type of insurance, survey is compulsory.


For Inquiry, Please contact: +628128079130

or email:





Source: Industrial All Risks – Munich Re wordings



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10 Comments on “Property All Risks (PAR) = Industrial All Risks (IAR)”

  • Nermeen wrote on 20 February, 2009, 23:58

    i beleive to provide a good service to the client , you can advice your client to chose between , using the wording of LM7 as it is better than the PAR or the IAR wording ,

    IMAM MUSJAB: Thanks Kassem, It however LM7 is not popular here in Indonesia, People prefer to use IAR + some amended clauses

  • Roy Firmansyah wrote on 14 April, 2009, 18:26

    Saya sangat tertatik untuk mempelajari Asuransi dengan Cover PAR/IAR, saya juga sangat menginginkan mempunyai gelar AAIK seperti Bapak Mohon Petunjuk

  • leo wrote on 12 September, 2009, 20:21

    Pa iman bedanya dimana pak antara PAR dan IAR…kalo saya punya bengkel bubut … dan ingin asuransikan mesin-mesin saya apakah sebaiknya pake asuransi PAR/IAR atau Machinary Breakdown saja pak…

    Leo M

  • Kopral Jono wrote on 24 November, 2009, 10:22

    Dear Imam, how posibly the insurance can pay the claim. I’ve taken PAR but not eq. It’s called insurance fraud because it is different from your paper

    IMAM MUSJAB: Be Careful, Pak?!

  • Yanni wrote on 7 December, 2009, 13:00

    Pak apa perbedaan polis PAR/IAR dan Fire Insurance
    Apa beda Adjustable Clause I dan 2
    Apa syarat-syarat di dalam public Authorities Clause ?


    IMAM MUSJAB: Beda sangat jelas…Fire Insurance hanya menjamin kebakaran, petir, ledakan, kejatuhan pesawat dan asap saja sedangkan PAR/IAR covers all risks. Untuk clauses silakan di download di “Wording and Clauses”

  • ahmad wrote on 11 February, 2010, 18:48

    I think the Jewelry is covered  under LM7 IF the details of sum insured has been provided by insured and with additional premium ..please reply to me   

    IMAM MUSJAB: Yap some policies provide cover for jewelry with very high premium off course

  • Kusnadi wrote on 11 January, 2011, 15:30

    Pak, mau tanya, saya ada kasus hilangnya stock CPO pada saat transfer dari Tanki ke Kapal. Hilangnya sebagian stocks CPO ini ternyata terjadi karena adanya lubang/patahan pada sambungan pipa penyalur. Patahnya pipa ini kemungkinan besar dikarenakan adanya tekanan dari atas, dimana pipa tertimbun tumpukan “sampah” serabut sawit diatasnya. Apakah kehilangan stocks CPO ini dijamin oleh Polis Property All Risks ? Stocks CPO itu merupakan obyek pertanggungan. Saya sangat mengharapkan informasi/jawaban dari Bapak. Terima atas bantunannya….Salam, Kusnadi

    Imam MUSJAB: Dijamin di asuransi marine cargo “Institute Bulk Oil Clause”, Pak bukan di Property All Risks nya

  • Abul Aflam wrote on 4 April, 2011, 13:52

    What are the main differencies between LM7 and IAR

  • Heru wrote on 15 July, 2013, 17:08

    Dear Pak Imam,

    Mohon dijelaskan batasan pengeceluaian atas “Property being worked upon / in course of construction”… apakah pengecualian tersebut khusus untuk sebagian property yang sedang dalam perbaikan atau secara keseluruhan… bila terjadi kejadian yang dijamin polis…

    Terimakasih Pak….

    Selengkapnya, bunyi wordings-nya adalah sbb:

    Special Exclusions to Section I
    1. The Insurers shall not be liable for loss destruction of or damage to
    1.1 property in the course of construction or erection
    1.2 property being worked upon and actually arising from the process of manufacture testing repairing cleaning restoring alteration renovation or servicing

    kedua-nya me-refer pada “bagian yang sedang dikerjakan saja”. (untuk No. 1.1 karena harus beli polis CAR/EAR dan tidak overlapping)


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