Boiler and pressure Vessels Insurance:-
There are various type of boiler or pressure vessel such as steam boilers, steam receivers, economizers, super heaters, steam pipes, hot water heating and supply installations ironing machine which may be covered under boiler pressure vessel policy (BPV) against loss or damage due to breakdown, explosion and collapse. The surrounding property of the Boiler and Liability for Third Party may also be covered along with boiler Insurance Risk.
Scope of covers:-
1. Damage to insured item itself (other than by fire).
2. Damage to other surrounding property of the Insured (other than by fire).
3. Liability for Third Party Property Damage and / or fatal or non / fatal personal injuries.
This policy is also subject to the following exclusion:
1. Defects due to the wearing away or the wasting of the materials of a boiler or a pressure vessel.
2. The failure of individual tubes in boilers of the water tube unless such defects result in explosion or collapse.
3. Damage to property belonging to the insured or held by him in trust or in commission for which he is responsible.
4. Damage and or liability caused by the willful act or willful neglect of the insured.
Direct risks covered under Contractor’s All Risk Insurance:
Fire, Burglary & Theft, Storm, Flood, Cyclone, Earthquake, subsidence of land, Collapse of construction work and Accidental damage.
There are two sections in the Policy:-
Section 1 – Material damage(Damage to Contract works
Including Construction plant and equipment, Clearance of debris.)
Section 2 – Third party liability(Bodily Injury & Property Damage)
3. Erection All Risks Insurance (EAR)
The basic concept of EAR insurance is to offer a comprehensive and adequate protection against all the site risks involved in the Erection of machinery and plant as well as structure of any kind.
Direct risk covered under Ejection All Risks Insurance:
Fire, Explosion, Riot and Strike damage , Malicious Damage, Storm, Flood, Cyclone, Earthquake, subsidence of Land, negligence, lake of skill, Short circuit and Accidental damage on site.
There are two sections in the Policy:-
Section 1 – Material damage (Damage to erection works Including plant and equipment, Clearance of debris.)
Section 2 – Third party liability (Bodily Injury & Property Damage)
How to select the sum insured?
Sum insured under section I -should not be less than the completely erected value of the property inclusive of estimated freights, customs duty, and erection cost etc.
Sum insured under section II should represent the per accident limit ,the maximum legal liability that may fall on the insured as a result of an accident , maximum number of such accidents which can reasonably be expected to occur.
4. Contractor’s Plant & Machinery Insurance (CPM)
The policy covers sudden, accidental, external damage to the insured machinery due to any cause other than those specifically excluded in the policy.
The policy covers the machinery whilst they are in operation or at rest or whilst being dismantled for the purpose of cleaning or overhauling or whilst being shifted within the premises or during subsequent re-election, but in any case only after successful commissioning.
The main exclusions of the policy are:-
1. loss or damage due to any internal electrical or mechanical breakdown, defective lubrication, lack of oil or coolant although any consequent external damage is payable.
2. Loss or damage to replaceable parts or attachments such as bits, drills, knives, dies moulds etc.
3. Loss or damage whilst in transit from one location to another.
4. Loss due to wear and tear, corrosion, rust, deterioration, atmospheric conditions.
5. Loss or damage during testing operating or whilst being used for a purpose other than designed for.
6. Loss or damage to machinery working under ground.
6. Loss or damage for which the supplier or manufacturer is responsible either by law or under control.
Risk covered under CPM :Fire; water, Burglary & Theft, Storm, Flood, Cyclone, Earthquake, subsidence and Accidental damage.
5.Machinery Insurance (MB)
7.Electronic Equipment Insurance (EEI)
This policy is divided into three sections:-
Scope of cover Section 1 - Equipments: The cover applies to any unforeseen and sudden physical loss or damage from any causes, (other than those specifically excluded), in a manner necessitating repair or replacement.
Section – 2 External data media: The coverage applies of the external data media,) inclusive of the information stored, which can be directly processed in EDP systems, suffers material damage by peril covered under section-1 of the policy. The coverage applies while the insured data media are kept on the premises. Coverage against restoration of data is only to be granted if backup system is available.
This form of insurance applies to all forms of electrical and mechanical machinery, boiler locomotives, lifting handling machinery, air conditioning equipment, generator and all forms of process machinery such as printing press, rolling mills, textile machinery.
This Policy covers unforeseen and sudden physical loss or damage due to defects in casting, material faulty design, fault at workshop or in erection, bad workmanship, lack of skill, shortage of water in Boilers, physical explosion, short circuit or from any other cause not specifically excluded under the policy.
Exclusions are:
Fire, Lightning, Chemical explosion, theft, burglary, flood, inundation, earthquake, cyclone, wear &tear, cavitations, erosion, rust, loss or damage due to war invasion, rebellion, mutiny, riot, strike, lockout, civil commotion, nuclear radiation, or radioactive contamination.
Rates & Terms are quoted on the basis of prescribed questionnaire and other information submitted to the Company.
Sum Insured: The sum insured shall be equal to the cost of replacement of the Machine with new Machine of the same kind and same capacity. This will comprise new replacement cost including freight and customs duties, if any, and erection costs.
6. Deterioration of Stock Insurance (DOS)
This insurance covers various items such as potatoes, shrimps, frog legs and fishes against loss of damage caused due to any deterioration or contamination occurring as a result of failure of electricity breakdown of machinery etc. subject some exceptions and excesses.
Main exclusions under DOS Policy are:- Shrinkage, inherent defects or diseases normal deterioration or natural putrefaction Loss or damage due to improper storage, insufficient circulation of air. Non-uniformity temperature, consequential loss or liability, loss due to nuclear, reaction, nuclear radiation or radioactive contamination. Fire &/or lightning, theft Earthquake, Cyclone, Flood, other natural catastrophes. Loss or damage directly or indirectly due to war, invasion, hostilities riot, strike lockout & civil commotion etc.
Scope of cover Section – 3 Increased Cost of Working: This section indemnifies the insured for all additional costs incurred to ensure continued data processing on substitute equipment if such costs are incurred as an unavoidable consequence of loss or damage indemnifiable under material damage section of the
8. Lift, Escalator and Hoisting Equipment Insurance:
This policy is divided into two sections: -
SECTION - 1: DAMAGE BY BREAKDOWN
SECTION - II: LIABILITY TO THIRD PARTIES
Risk covered: Section -1:-
A)The actual breaking of any part of a machine causing sudden stoppage of such machine and necessitating repair or replacement before working can be resumed.
B)Electrical burn-out of any part of a machine
C) The actual and complete severance of a rope but not breakage or abrasion of wires or strands although replacement is necessitated thereby while the machine is being used under ordinary working conditions.
Risk covered: Section -2:-
A)Accidental bodily injury to any person (not member of the insured’s family) or a person engaged in and upon the service of the insured at the time of the occurrence giving rise to such injury nor a person claiming against the insured under any Workmen’s Compensation Act)
B) Accidental direct damage to wearing apparel or personal effects of any person
9.POWER PLANT OPERATIONAL PACKAGE INSURANCE:
This policy is divided into three sections: -
Section 1 - PROPERTY ALL RISKS COVER: This section provide cover of risks oft sudden and accidental direct physical loss of or damage including Machinery Breakdown to all real and personal property of the Insured whilst on the insured premised as more fully described in the schedule hereto and wholly attributable to any cause not hereinafter excluded, occurring during the period of the policy.
Section - 2.BUSINESS INTERRUPTION COVER:
During the period of Insurance, the business carried on by the insured at the premises specified in this policy is interrupted or interfered with in consequence of an accident indemnifiable under Section-I then the Insurer will indemnify the Insured for the amount of the loss resulting from such interruptions or interference in accordance with the provisions of this Section.
Section – 3THIRD PARTY LIABILITIES:
The Insurers will indemnify against all sums not exceeding the Limits of Liability stated in the Schedule which the Insured shall become legally liable to pay as compensation for:
1. Accidental bodily injury or illness to any persons;
2. Accidental loss of or damage to property;
10. AVIATION HULL INSURANCE:
1. It covers ‘All Risks’ of physical loss or damage to an aircraft (Except Policy exclusions). Covers also include pilot error, theft, all natural causes, and damage during maintenance, ground fires/ taxiing accidents etc
2) Aviation hull war and allied perils insurance: This policy covers loss of or damage to an aircraft resulting from war and associated perils including confiscation, terrorist acts, strikes, Riots, sabotage and hijacking.
3) Spares all risk insurance: It covers ‘All Risks’ of physical loss or damage to spares including spares engines when not fitted
to an aircraft.
4) Aviation legal liability insurance: This insurance covers operator’s l liabilities to passenger, passenger’s baggage, cargo and mail
and legal liabilities to the third parties. Deductibles are normally applied only in respect of baggage claim.
5) Deductible insurance: This insurance designed to reduce the standard level of deductible imposed under the main
Hull All Risk Insurance. It is normally a separate policy and subject to aggregate limit for all claims.
6) Aviation war, hijacking and other perils excess liability insurance: This insurance policy covers damages
for bodily injury or property damage, caused by an occurrence in excess of the limitation of liability contained.
7) Total loss only insurance (TLO) : This insurance provides the protection in the event of total loss of the aircraft.
