ENGINEERING INSURANCE :
In industries and factories, even in offices or at home, nowadays more and more machinery and equipments are being used. They are exposed to various accidental losses like fire, theft, accidental breakdown etc. Such losses not only cause financial stress on its owner but also hinder normal operation of the Industry. Apart from this, massive Engineering projects ranging from building of bridges to set up thermal power stations are very common in today’s era of industrialization. Major accidents or natural disasters like earth quake etc will cause immense losses to such projects. Engineering Policies are designed to provide coverage against such accidental losses.
TYPES OF POLICIES :
Broadly, various engineering policies can be classified as follows :
1. Construction Phase Insurance (Project Policies) : These are one time policies issued for entire project period irrespective of whether the project period irrespective of whether the project period is a few days or a few years
Operational Phase Insurance ( Annual Policies ) :
(Project Policies) :
SCOPE OF COVERAGE :
All Risks (with certain exceptions) involved during storage, assembly, erection/Construction against:-
FEW OF THE EXCEPTIONS ARE AS UNDER :
SUM INSURED :
The Sum Insured under Project Policies should represent the completely erected value of the project to be installed including freight, customs duties and erection cost. This should represent the current replacement value of the items when erected.
Following heads are to be taken for arriving at the Sum Insured:
Operational Phase Insurance :
ELECTRONIC EQUIPMENTS INSURANCE SCOPE
With rapid computerisation and growing use of very sophisticated electronic machines, the demand for E.E.I policy is increasing every day. All Electronic equipments like Computers, Medical, Biomedical, Micro- processors; Audio/Visual equipments including the value of Systems Software may be covered under Electronic Equipment Policy. The term equipment shall also include the entire computer system consisting of CPU, Keyboards, Monitors, Printers, Stabilizers, UPS, System Software etc. The policy offers a wide ranging cover in following three sections -
Section - I : Provides material damage cover to the main equipment
Section – II : Provides cover to external data media used
Section – III : Provides cover to increased cost of working which arises due to damage to the insured equipment
Cover granted under E.E.I policy are virtually against all insurable perils namely fire, RSMD, Terrorism, Flood, Storm, subsidence, Earthquake, accidental breakdown while at work or rest, electrical damage, faulty manipulation, dropping, falling impact etc.
FEW OF THE EXCEPTIONS :
Damage due to faulty design, defective materials etc. Wilful negligence, bad workmanship, Consequential loss say penalty for delay etc. Inventory losses War, nuclear reaction, Normal wear and tear, gradual deterioration etc
War and Nuclear perils,Willful act/negligence,Pre existing defects/manufacturing defects, Normal wear and tear, gradual deterioration, Consequential loss of any kind Cessation of work. Aesthetic defects
Dish Antenna is excluded from the scope of cover under this policy. Movable/Portable Electronic Equipments like testing and Biomedical equipments can be covered with loading in premium.
MACHINERY INSURANCE :
All items of Plant and Machinery are susceptible to breakdown or damage irrespective of their quality or the maintenance. With the steady increase in cost of parts, labour and freight, repairs and replacements are becoming more and more costly day by day. Machinery Insurance Policy covers unforeseen and sudden damage to the insured Machinery while at WORK or at REST, during cleaning, inspection, overhauling or removal to another position within the premises
War and Nuclear perils,Willful act/negligence,Pre existing defects/manufacturing defects, Normal wear and tear, gradual deterioration, Consequential loss of any kind Cessation of work. Aesthetic defects
A. Scope :
All types of installed machinery can be covered under this policy against the following : Damage caused by - vibration, mal-adjustment, mal-alignment, defective lubrication, abnormal stress, centrifugal force, explosion/implosion, impact, collision, falling, faulty material, design, construction, excessive electrical pressure, failure of insulation, short circuit arcing failure of protective devices, entry of foreign material, lack of skill, carelessness; The main element of the insurance as may be seen above are Electrical & Mechanical breakdown and accidental damages.
B. Exceptions :
C. Additional cover :
GENERAL PROVISIONS :
1. Sum Insured :
Sum Insured of machinery covered should represent new replacement value including freight, Taxes, Customs Duty and installation cost.
DETERIORATION OF STOCKS INSURANCE (POTATOES) :
GENERAL REGULATIONS :
Definition of cold storage :
Declaration facility :
Policies on declaration basis are permissible on the following terms and conditions.