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MACHINERY BREAKDOWN INSURANCE POLICY (EXCLUDED PERIL (war and related risk…
MACHINERY BREAKDOWN INSURANCE POLICY
DEFINITION
Cover against loss or damage due to breakdown of plant and machinery
after successful completion of their performance acceptance test
whether they are at work or at rest or being dismantled for the purpose of cleaning
protection given to machinery in all condition
EXAMPLE OR OCCUPATION OF MACHINERY
Oil and petrochemical
chemical and pharmaceutical
manufacturing industries
power generation,utilities and alternative energy
SUBJECT MATTER
all mechanical and electrical equipment
SCOPE OF COVER
cover against ant unforeseen and sudden physical loss or damage
Careless
short circuit
shortage of water in boiler
physical explosion
defects in casting and material
CONDITION
Interpretation
this policy and schedule need to read together as one contract
claims
should notify the insurer immediately
cancellation
which case shall retain the short period rate for the time on risk
premium warranty
the premium due must be paid and received by insurer within 60 day from the inception date of the policy
THE PREMIUM CHARGE VARIES DEPENDING ON THE:
nature and mode of the operation
maintenance program in place
underwriting principle
equipment type
TYPE OF CLAIM SETTLEMENT
partial loss
new part are replaced in respect of damage items
Total lost
actual value of the item before the occurrence of the loss including all other charges for dismounting of the machinery destroyed less any salvage and deductible of the loss
CLAIMS
notification of claim
submission of claim
duty of disclosure of claim information
EXCLUDED PERIL
war and related risk
the deductible stated in the schedule
willful act or willful negligence of the insured or it representatives
fire,lightning,explosion
any consequence of nuclear reaction
supplier, contractor or repairer is responsible either by law or under contract
UNDERWRITING CONSIDERATION
age and condition of the machine
seasonal/shift use and operational hours
maintenance programmed in place
loss history