Machinery Insurance
INTRODUCTION
All items of Plant and Machinery are susceptible to breakdown or damage irrespective of their quality or the maintenance. With the steady increase in cost of parts, labour and freight, repairs and replacements are becoming more and more costly day by day.
Our Machinery Insurance Policy covers unforeseen and sudden damage to the insured Machinery while at WORK or at REST, during cleaning, inspection, overhauling or removal to another position within the premises.
Scope
All types of installed machinery can be covered under this policy against the following : Damage caused by
- vibration, mal-adjustment, mal-alignment,
- defective lubrication, abnormal stress, centrifugal force,
- explosion/implosion, impact, collision, falling,
- faulty material, design, construction,
- excessive electrical pressure, failure of insulation, short circuit arcing
- failure of protective devices,
- entry of foreign material,
- lack of skill, carelessness
The main element of the insurance as may be seen above are Electrical & Mechanical breakdown and accidental damages.
Exceptions
- Fire, lightning, theft, subsidence, landslide, flood, storm, earthquake and other
- perils which can be covered under fire
- damage during experiments/overhauling or similar tests,
- normal wear or deterioration,
- willful act/negligence,
- damage to exchangeable parts
- manufacturer’s defect
war, nuclear reaction etc.
Additional cover
- Insured’s own surrounding property cover
- Third Party Liability
- Express freight overtime & holiday wages (Excluding Air freight)
- Air freight
- Additional Custom Duty
Some of the major exclusions are–
- loss or damage due to faulty design, defective material or casting, bad workmanship other than faults in erection. This exclusion is limited to the items immediately affected and does not apply to any consequential loss to correctly executed items.
- cost necessary for rectification or correction of any error during erection unless resulting in physical loss or damage.
- loss or damage due to gradual deterioration, atmospheric condition, rusting etc.
- loss discovered only at the time of taking inventory.
- loss arising out of penalty for delay, non-fulfillment of terms of contract.
Section II – covers Third Party Liability for bodily injury and property damages.
The policy can be extended to cover the following on payment of additional premium.
- Clearance and removal of debris
- Damage to owner’s surrounding property
- Maintenance visit / extended maintenance cover
- Additional customs duty
- Civil works
- Express freight
- Air freight
- Deletion of duration clause under marine
- Large Projects can be insured with specially worded Policies