Client Profile

Industry: Pharmaceutical Warehousing & Distribution (Cold Chain Logistics)
Location: Bhiwandi, Maharashtra
Facility Size: 55,000 sq. ft. (Temperature-controlled zones: 60%)
Annual Turnover: ₹310 Crore
Previous Insurance Premium: ₹41 Lakhs
RiskMantra Annual Cost: ₹22 Lakhs

Pre-RiskMantra Pain Points

The business had growing vulnerabilities with temperature-sensitive inventory and non-standard practices:

Temperature fluctuations during power outages went undetected
Spoilage claims under SFSP were often rejected due to lack of proof
No surge protectors on HVAC panels — past fire incident in compressor room
Fire hydrants had no sensor-based checks; found dry in 2 quarterly inspections
Fragmented fire, EEI, and transit policies with overlapping and uncovered zones
No mechanism to detect early theft or unauthorized night access

RiskMantra Implementation & Engineering Excellence

Physical site walkthrough with warehouse managers and quality control team
Reviewed cold chain management SOPs, asset layout, and past incident logs
Identified operational-critical risks: Power fluctuation, HVAC failure, temperature drift

Scientific asset revaluation done for cold storage units, racks, mobile HVACs, IT server & pharma-grade inverter backups
Recalibrated sum insured from ₹56 Cr → ₹72 Cr to fix underinsurance
Included previously ignored “non-plant” areas (loading bays, gensets)

IoT devices were deployed across the facility:

IoT Sensor Installed	Objective & Result
Temperature Drift Sensors	Installed inside 3 cold rooms — alert at ±2°C deviation
Hydrant Water Level Sensors	Prevented dry line failures during audits
Power Surge Monitors	Flagged compressor panel failures in 3 seconds
Motion Sensors	Secured storage aisles during night shift
Smoke Sensors in Server Room	Triggered dry suppression system in microseconds

All IoT data processed internally at client-side server; no third-party access
Instant alerts enabled early action — reducing inventory spoilage events

Replaced legacy fire policy with Industrial All Risk (IAR) with Spoilage Add-on
Merged Transit Insurance into IAR for seamless claim path
Extended EEI to include precision HVAC and lab testing systems
Negotiated ₹6 Lakh reduction in premium with broader coverage terms
Removed ambiguity in “breakdown” vs. “damage” clauses on HVAC

Incident:

Sudden voltage surge during summer power cutout
HVAC failed in Cold Room #2 for 7 minutes
Drift sensors triggered an alert → Auto alert to maintenance team
HVAC manually reset and chiller restarted within 9 minutes

Impact Without RiskMantra:

₹1.95 Cr of antibiotics would’ve been exposed to temp >8°C (threshold breach)
Rejection likely from insurer due to “late intimation” or “no proof”

Actual Outcome:

Sensor data showed temp remained at 7.6°C
No loss declared, no claim filed
Prevented major financial and reputational damage

Other Incident:

Minor fire in electrical room (due to HVAC relay)
Smoke detector triggered suppression system
Claim of ₹21 Lakhs processed in under 18 days due to instant documentation

Bi-monthly risk inspections done by RiskBirbal engineers covering fire system readiness, HVAC electrical safety, floor-wise insurance adequacy based on stock rotations
Regular update of SOPs and audit checklists shared with client’s internal team

Financial Impact (Year 1)

Benefit Area	Estimated Financial Impact (₹)
Premium Optimization	₹6,00,000
Loss Avoidance via HVAC IoT Alert	₹1,95,00,000
Fire Claim Processed Smoothly (₹21L)	₹21,00,000
Underinsurance Rectified (Claim Ready)	₹43,00,000
Total Benefit	₹2,65,00,000+

Cost of RiskMantra: ₹22,00,000
ROI Delivered: >12x in Year 1

Conclusion

In a business where time-sensitive conditions decide the difference between product and peril, RiskMantra provided real-time alerts, insurance optimization, and preemptive engineering that protected both lives and profits.

RiskMantra is not a cost — it’s an intelligent investment in business continuity and insurance leverage.