Faulty material, defects in casting, faulty construction, faulty design,
- Cracking or overheating of parts, short circuits and electrical burnouts,
- Faulty erection, explosion,
- Tearing apart on account of centrifugal forces,
- Failure of operation of safety devices.
- Lack of skill, carelessness, sabotage, falling bodies,
- Electrical over pressure, failure of other machinery connected with it, entry of foreign objects.
- All types of industrial machinery like compressors, pumps, turbine etc.
- Electrical machines like transformer, electrical motor, generator etc. can be covered under this policy
- Effective insurance cover for plant, machinery and mechanical equipment at work, at rest or during maintenance operations.
- It covers unforeseen and sudden physical loss of or damage to the insured items, necessitating their repair or replacement.
- The owner of the machine or a person or company having financial interest in the machine.
- The Industrialist / user of the Industrial machinery
- The financial institutes who have an interest in the machinery
It is a requirement of this policy that the sum insured or value for which the particular machine is insured should represent the present day purchase value of a similar new machine including all incidental expenses like custom duties, taxes, excise, freight, insurance charges, handling charges etc.
In case the sum insured under the policy is less than as per the above requirement the claim will be paid only in such proportion as the sum insured bears to the current replacement cost of similar new machinery.
The policy can be extended to include the following risks on payment of additional premium.
- Damage to foundation of machinery
- Damage to oil in electrical apparatus
- Express freight (excluding air freight), holiday rates, overtime charges
- Air freight
- Additional custom duty i.e. the additional percentage of duty payable at the time of reimport for replacement over and above the percentage of duty included in the original sum insured.
- Own surrounding property i.e. damage to the insured's own existing property or property in his custody or control (not included in the sum insured of the policy) due to any damage to the insured machines which is covered under the policy.
- Third party liability i.e. liability falling on the insured for bodily injury to any other party other than those covered by the policy or for property damage belonging to such other party.
No Cover is provided against loss or damage caused by:
- Wear and tear due to ordinary usage.
- Fire, Lightning, aircraft or other aerial devices, theft, burglary, collapse of buildings, flood, inundation, earthquake, subsidence, typhoon or similar act of nature.
- Nuclear risk
- Willful acts or gross negligence of the insured or his representative.
- Consequential Loss
- War risk, civil commotion, riot and strikes.
The Insured is subject to deductible on each claim, either as a percentage of the costs of reinstatement or as an agreed monetary access.
There is an advantage to both insured and insurers in helping to keep the number of small claims outside the scope of insurance.
- Commencement/completion Date.
- Proposal Form dully filled, signed and stamped from insured.
- Item wise Sum Insured.