Machinery Insurance Policy

Saturday, August 29, 2009

This insurance covers industrial machinery like compressors, pumps & turbines. It also insures electrical machines like transformer, electrical motor, generator, Building and Stocks. Any loss on the gross profit of the insured due to machinery breakdown can also be covered under this policy.
Intended Users:
	Factories
	Workshop owners
	Industries
	Home owners
Coverage:
This policy covers whilst on the premises mentioned therein you suffer any unforeseen and sudden physical loss or damage from causes such as defects in:
Casting and material. Faulty design. Faults at workshop or in erection. Bad workmanship. Lack of skill. Carelessness. Shortage of water in boilers. Physical explosion. Tearing apart on account of centrifugal force. Short-circuit. Storm.
EXCLUSIONS:
This policy does not cover the following loss and damages to:
An exchangeable tool e.g. dyes, moulds, chains, bearings, engraved cylinders. Parts which by their use and/or nature suffer a high rate of wear & tear or depreciation, e.g. belts, ropes, wire, crushing hammers, objects made of glass & rubber. Lubricants e.g. fuels, catalysts, refrigerant liquids, gases, solids, and semi solids. Fire. Direct lightning. Chemical explosion (except flue gas explosion in boilers). Aircraft or other aerial devices or articles dropped there from. Theft, burglary or attempted threat. Collapse of buildings, floods, inundation, earthquakes, subsidence, landslides, avalanche, hurricanes, cyclones, volcanic eruptions. Loss or damages for which a supplier, contractor, or repairer is responsible either by law or under contract. Willful act or gross negligence of the insured. Direct consequence of the continual influence of operation (e.g. wear and tear, cavitations, erosion, corrosion, rust, boiler scale). Machinery breakdown. Some other insurance policies can be issued under this policy:
Machinery Breakdown Insurance: This insurance policy covers the machinery breakdown, foundation of machinery and also covers the extra charges e.g. freight, night work, work on public holidays in case of loss (if it is stated in the schedule). Machinery Losses of Profit Insurance: This insurance policy covers the loss of profit of the insured due to the damage or loss of machinery that is covered in the machinery insurance policy. Loss of Contents Insurance: This insurance policy covers the loss of contents that is used in the machinery or kept in store of the assured due to the damage or loss of machinery that is covered in the machinery insurance policy. Deterioration of Stock in Cold Storage Insurance: This insurance policy covers the losses or deterioration of contents that are stored in the cold storage of the assured due to the damage or loss of machinery which is covered in the machinery insurance policy.