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CHAPTER 10 : MACHINERY BREAKDOWN POLICY (WHAT? (EXAMPLE INDUSTRY…
CHAPTER 10 :
MACHINERY BREAKDOWN POLICY
HOW?
CONDITION
Interpretation
this policy and the schedule shall be read together as one contract and any word or expression to which a specific meaning has been attached in any part of this policy.
Prermium Warranty
due must be paid and received by us within 60 days from the inception date of this policy or endorsement failing which the contract is automatically cancelled by insurer and insurer are entitled to a pro-rata for the period you were on risk
Claim
upon happening of an accident which gives rise to a claim, insured shall notify to insurer immediately. insured shall take all reasonable steps within insured power to minimize the extent of the loss or damage.
partial loss
new parts are replaced in respect of damage items including freight, custom duties, workmanship cost less any savage and deductible
total loss
actual value of the item before the occurrence of the loss including all other charges including charger for dismounting of the machinery destroyed less any salvage and deductible of the loss
Cancellation
insured may cancel your policy by giving us written notice at any time, in which case insurer shall retain the short period rate for the time on risk, this being not less than the minimum premium
Premium
maintenance progress in place
underwriting principles / requirements
nature and mode of operation
equipment type / design and age
UNDERWRITING
maintenance programme in place
loss history
age and condition of the machine
seasonal / shift use and operational hours
WHAT?
DEFINITION
the products covers against loss or damage due to breakdown of plant and machinery after successfull completion of their performance acceptance tests
SUBJECT MATTER
all mechanical and electrical equipment.
ex : generators, transformers, motor, lifts, elevators, engine
EXCLUDED PERILS
Excluded Peril
the deductible stated in schedule
willful act or negligence of the insured or his representatives
fire, lightning, chemical explosion, burglary and theft, flood, earthquake, subsidence, landslide and collapse of building.
war and related risk
any faults or defects existing at the time of commencement of this policy within within your knowledge or that of your representatives, whether such faults or defects were known to us or not.
faults or defects existing at the time of commencement of the insurance which ought to have been or were known to the insured
terrorism
supplier, contractor and repairer is responsible either by law or under contract
nuclear reaction , nuclear radiation, or radioactive contamination
wear and tear as consequences or ordinary use or operation as well as cavitation, erosion, corrosion or boiler scale
EXAMPLE INDUSTRY
chemicals and pharmaceuticals
manufacturing industries
oil and petrochemicals
power generation, utilities and alternative energy
WHEN?
in all condition as long as machine is own by insured whether there are at work or at rest or being dismantled for the purpose of cleaning or overhauling or when being shifted.
WHICH?
SCOPE OF COVER
covers any unforeseen and sudden physical loss to the property
short circuit
defects in casting and materials, faulty design,bad workmanship and faults at workshop or in errection
shortage of water in boilers
physical explosion, tearing apart on account of centrifugal force
lack of skils or carelessness
other cause not specifically excluded under thhe policy in a manner repair or replacement
WHO?
INSURED
enterperneur own of the machine
WHERE?
Brunei
Singapore
Malaysia