Cover for plant, Machinery and mechanical equipment at work, at rest or during maintenance operations.
It was developed grant industry effective insurance cover for plant, Machinery and mechanical equipment at work, at rest or during maintenance operations.
By its nature Machinery Insurance is “All Risks” insurance for machinery supplementing the coverage afforded by Fire Insurance. Thus it covers unforeseen and sudden physical loss or damage to the insured items necessitating their repair or replacement.
All type of machinery, plant, mechanical equipment and apparatus may be covered under machinery insurance.
If possible, all the machinery of plant or workshop or of a separate plat section should be included in the insurance in order to insure that risk is adequately balanced
Only those items having a short service life compared to the entire plant are normally excluded from machinery insurance i.e. mainly:
- All type of interchangeable tolls
- Sieves, engraved cylinders, stamps, dies, ropes, chains, belts
- Parts made of glass ceramic or wood, rubber tries
- Operating media of any kind such as fuel, gas, refrigerants, catalyst, liquid, lubricants(oil in transformers and circuit breaks, however, included since breaks, however included since it is not only a coolant but also serves as an insulation agent)
- Machinery insurance cover is limited to the insured’s premises and does not include Third party Liability and perils that could be catered in other policies unless specifically included by endorsement.
Loss or damage covered under Machinery insurance is mainly due to
- Faulty design
- Faults at work or erection
- Defects in costing and material
- Faulty operation, lack of skill, negligence, malicious acts
- Tearing apart an account of centrifugal force
- Physical explosion, flue gas explosion in boilers
- Electric causes like short circuit
- Shortage of water in boilers
- Act of God