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MACHINERY BREAKDOWN INSURANCE (scope of cover: (1) defects in casting and…
MACHINERY BREAKDOWN INSURANCE
it covers against loss or damage due to breakdown of plant and machinery after successful completion of their performance acceptance tests, whether they are at work or at rest, or being dismantled for the purpose of cleaning or overhauling or when being shifted within the premises.
condition: interpretation, claims, cancellation, premium warranty
businesses operating in the following industries:
oil and petrochemicals
chemicals and pharmaceuticals
manufacturing industries
power generation, utilities and alternative energy
subject matter of insurance: all mechanical and electrical equipments such as generators, transformers, motor, lifts, elevators. engine
scope of cover:
1) defects in casting and material, faulty design, faults at workshop or in erection, bad workmanship
2) lack of skill, carelessness
3) short circuit
4) shortage of water in boilers
5) physical explosion, tearing apart on account of centrifugal force
6) from other cause not specially excluded under this policy in a manner necessitating repair or replacement
the premium charge varies depending on the: nature and mode of the operation, maintenance program in place, underwriting principles/ requirements, equipment type/ design and age
claims: notification claim, submission of claim, duty of disclosure of claim information
type of claim settlement:
1) partial loss: new parts are replaced in respect of damage items including freight, custom duties, workmanship cost less any salvage and deductible
2) total loss: actual value of the item before the occurrence of the loss including all other charges including charges for dismounting of the machinery destroyed less any salvage and deductible of the loss.
excluded perils:
war and related risks
the deductible stated in the schedule
wear and tear as consequences of ordinary use or operation as well as cavitation, erosion, corrosion or boiler scale.
willful acts or willful negligence of the insured or his representatives
faults or defects existing at the time of commencement of the insurance which ought to have been or were known to the insured
supplier, contractor or repairer is responsible either by law or under contract