Cover
This form of cover protects against unforeseen and sudden physical loss or damage to machineries from cause such as defects in casting and materials, faulty design, faults at workshop or in erection, bad workmanship, lack of skill, carelessness, shortage of water in boiler, physical explosion, tearing apart on account of centrifugal force, short circuit or from any other cause not specifically excluded from the policy. The cover is operative whilst the machineries are working, or at rest, or being dismantled for cleaning or overhauling. Machineries will only be insured after successful completion of their performance acceptance test.
Machineries Commonly Insured under Machinery Insurance
This form of cover is suitable for machinery that have moving parts or which stores or transmits large amount of energy. The following are examples of such machineries:- working.
1. Boilers, heat exchangers, condensers
2. Pumps and compressors
3. AC and DC motors
4. Diesel and petrol engines
5. Steam and gas turbines
6. Alternators, motor generators
7. Switchgears, transformers, capacitors
8. Overhead cranes, lifts, escalators
9. Process equipment such as paper mill, plastic extruder, cement mil, screw press, agitated tank, etc
Major Exclusions
a. Damage due to fire and extraneous perils. These perils are more appropriately covered under Fire policy.
b. Damage to exchangeable tools, machinery parts which suffer a high rate of wear and tear or damage as a direct consequence of the continual influence of operation. These losses are in the nature of trade risks and maintenance cost, associated with the proper operation and care of machineries and should be borne by the Insured.
c. Loss or damage for which a supplier, contractor or repairer is responsible either by law or under contract.
d. Consequential loss or liability of any kind
e. War and kindred risks
f. Others
