Machinery Breakdown Policy
1. Why should I take Machinery Breakdown Insurance policy in spite of having a Fire Policy for the machinery?
Fire Policy does not pay for repair and /or replacement of machineries arising out of sudden accidental electrical and mechanical breakdowns. In order to have protection against such losses, Machinery Breakdown Insurance is required.
2. What kind of machines can be covered under Machinery Breakdown Insurance?
All types of industrial machinery like compressors, pumps, turbine etc. as also electrical machines like transformer, electrical motor, generator etc. can be covered under this policy.
3. What is the basis of valuation for Machinery Breakdown Insurance Policy?
It is a requirement of this policy that the sum insured or value for which the particular machine is insured should represent the present day purchase value of a similar new machine including all incidental expenses like custom duties, taxes, excise, freight, insurance charges, handling charges etc. In case the sum insured under the policy is less than as per the above requirement the claim will be paid only in such proportion as the sum insured bears to the current replacement cost of similar new machinery.
4. What type of equipment can be covered under Electronics Equipment Insurance Policy?
The policy covers the following types of equipments:
5. Does the Electronics Equipment Insurance Policy covers portable and mobile items?
No, policy doesn't cover the same.
6. What are the extensions available under the Electronics Equipment Insurance Policy?
The policy can be extended to include the following on payment of additional premium -
1. Damage to External Data Media for example punch cards, tapes, discs etc. as also the cost of reconstruction of data on this external media caused by a peril covered under the policy.
2. Increased Cost of Working incurred due to use of a substitute computer system as a result of an accidental damage to the computer insured under the policy and which is covered by the policy.
7. What types of electronic equipment can be covered under the Electronic Equipment insurance policy?
All costly electronic equipment such as computers, biomedical equipment, X-ray equipment, audio-video equipment, microprocessors, word processors, telecommunication equipment, electronic typewriters, photo copiers, etc can be covered against unforeseen / sudden physical loss or damage within the premises under the Electronic Equipment insurance policy.
8. Are losses caused by computer viruses covered under Electronic Equipment insurance?
A virus may not necessarily cause damage to the hardware components of a computer network. But, owing to circumstances of normal wear and tear, computer disk drives and monitors might be damaged and lose data.
Physical losses are covered in the policy. Viruses can cause corruption or erasure of data without physical loss to the components of the computer system. So losses caused by computer viruses are not covered under this policy.
9. What type of projects can be covered under this Contractors’ All Risk Policy?
Predominantly Civil Engineering Works are insured under this policy. Examples are buildings, bridges, flyovers, etc and such civil engineering projects.
10. Can I pay the premium in installments under Contractors’ All Risk Policy?
In case the policy period exceeds 12 months, the premium can be paid in installments
11. Is the Contractors’ All Risk Policy meant only for the Contractors executing Civil Engineering Contracts?
The policy can be availed by the Principal Owners of the contract works or Contractors as per the terms of the contract.
12. What kind of civil engineering projects can be covered under the Contractor's All Risk insurance policy?
All types of civil engineering projects like residential dwellings, office buildings, commercial buildings, godowns and warehouses, hospitals, schools and all sorts of factory buildings, cinemas, silos, steel structures, canals, tunnels, drainage systems, road and sewer systems, hangers, dams, bridges, water supply lines, construction work in relation to electric power house, ports and all other construction work depending upon merits of the contractors and quantum of the project are covered under the Contractor's All Risk insurance policy.
13. How is the Sum Insured calculated under the Contractor's All Risk insurance policy?
The Sum Insured under the Contractor's All Risk insurance policy is based on the completed value of the contract works after the completion of construction inclusive of all cost of materials, wages, freights, custom dues, construction costs and materials or items supplied.
14. What type of projects can be covered under Erection All Risk Policy?
Installation of new plant and machinery or expansion of existing capacity can be insured under this policy.
15. What are the machineries covered under the Contractor Plant and Machinery Policy?
This policy covers all types of machinery used at the construction sites like excavators, cranes, bull dozers, etc
16. Whether the damages caused by internal breakdowns covered under Contractor Plant and Machinery Policy?
The policy covers sudden and accidental external damages to the insured machinery due to any cause other than those specifically excluded in the policy. Internal breakdowns are not covered.
17. What are the add on covers available under Contractor Plant and Machinery Policy?
The policy can be extended to cover
18. Who can take the Contractor Plant and Machinery Policy?
The policy can be taken by any one of the following parties, either individually or jointly:-
19. I have earthmoving equipments which are registered as per M V Act. Do I have an option of insuring them either under Motor Vehicle Insurance or CPM insurance?
In respect of Machinery/ equipments, whether registered with RTO or not, but engaged at the Project site, the Insured, has an option either to select the Motor/Non-Motor Policy.