This policy covers sudden and unforeseen damages to plant, machinery and mechanical equipment due to accidents, fire, collision or any other physical damage according to the terms and conditions of the policy.
Loss or damage covered under machinery insurance is mainly due to one of the following causes:
- Faulty design
- Faults at workshop or in erection
- Defects in casting and material and manufacturing
- Faulty operation, lack of skill, negligence, malicious acts
- Tearing apart on account of centrifugal force
- Physical explosion, flue gas explosion in boilers
- Electrical causes such as short circuit
- Shortage of water in boilers
- Storm, frost, drifting ice
Exclusions
This policy does not cover the following loss and damages to:
- Exchangeable tools, e.g. dies, moulds, chains, bearings, engraved cylinders
- Parts which by their use and / or nature suffer a high rate of wear or depreciation, e.g. belts, ropes, wire, crushing hammers, object made of glass, rubber tyres
- Operating media e.g. fuels, catalysts, refrigerant liquids, gases, solids, and semi solids
- Loss or damages due to fire
- Loss or damages due to direct lightning
- Loss or damages due to chemical explosion (except flue gas explosion in boilers)
- Loss or damages due to aircraft or other aerial devices or article dropped there from
- Loss or damages due to theft, burglary or attempts there at
- Loss or damages due to collapse of buildings, flood, inundation, earthquake, subsidence, landslide, avalanche, hurricane, cyclone, volcanic eruption