Loss due to Failure of Electricity in IAR policy - MD claims

IAR policy excludes loss or damage to insured property arising out of failure of electricity supply to the plant.
But as per exclusion wordings, any subsequent loss to insured property caused by an ensuing peril not excluded in the policy, shall be payable.
For example if material undergoing process gets damaged / spoiled due to failure of electricity, it is excluded but if failure of power supply causes accidental fire and damages insured property, then this shall be payable as ensuing damage.
This should not be confused with CBI extension available under BI section of policy in respect of failure of electricity supply. We are talking about material damage section of policy.
Hope it clarifies all doubts relating to this exclusion

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