RiskMantra Shields ₹2.65 Cr Loss
Pharma Warehousing Company Achieves >12x ROI with RiskMantra
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.