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MACHINERY BREAKDOWN POLICY (Scope of Cover (must be happen sudden /…
MACHINERY BREAKDOWN POLICY
DEFINITION (SCOPE OF COVER)
Cover against any loss or damage due to breakdown of plant and machinery after successful testing it
will be covered any situation
as long as
this machine is the
subject matter
of the policy
CONDITION
CLAIMS
Duty of disclosure the information
Submission of claim
Notification of claim
CANCELLATION
If the insured want to cancel the contract : 1 month period
If the insurer want to cancel the contract : 14 days (insured can refund the premium back)
I
NTERPRETATION
PREMIUM WARRANTY
In the 60 days, the insured must pay the premium, if not the contract will automatically cancel. If in the 60 days period, machinery breakdown, the insurer will not cover the loss because the insured not pay the premium.
2 TYPE OF LOSSES
PARTIAL LOSS - only cover half of the loss
TOTAL LOSS - covers all the loss
UNDERWRITING CONSIDERATION
Maintenance programmes in Place
Seasonal / shift use &Operational hours
Age & condition of the machine
Scope of Cover (must be happen sudden / unforseen
) -
Short circuit
Lack of skill, careless
Shortage of water in boilers
Defects in casting &Material, faulty design, faulty at workshop or in erection, bad workmanship
Physical explosion, tearing apart on account of centrifugal force
From other causes not specifically EXCLUDED under this policy
THE PREMIUM CHARGE VARIES DEPEND ON THE
Maintenance program in Place
underwriting principles/ requirements
Nature &mode of operation
Equipment type /design and age