The policy covers financial loss incurred by the insured due to loss or damage to machinery as a result of accidental, electrical and mechanical breakdown. It reimburses the insured for the cost of repairs or replacement of machinery of like nature.
WHO CAN TAKE THIS INSURANCE?
This insurance can be taken out by individual owners of machinery or any person or company with a financial interest in the machinery.
WHAT KIND OF MACHINES CAN BE COVERED?
All types of industrial machinery like compressors, pumps, turbines etc. as well as electrical machines like transformers, electrical motors, generators etc. can be covered under this policy.
WHAT IS THE SUM INSURED OR VALUE FOR WHICH POLICY IS TO BE TAKEN:
It is a requirement of this policy that the sum insured or value for which a 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.
The policy covers all kinds of electrical and mechanical breakdown resulting from the following incidents:
- Faulty material/workmanship of the machine
- Action of centrifugal forces contributing to disruption of the rotating parts
- Failure of lubrication due to malfunctioning of lubricating oil pumps or its breakdown
- Malfunctioning or failure of safety devices
- Electrical short-circuiting including electrical fire originating from failure of insulation and or over voltage or under voltage conditions
- Abrupt and sudden stoppage of other connected machinery
- Entry of foreign bodies into running machine
- Inexperienced operations causing damage due to error of judgment or error in operation
How to claim
In case of any such incident which falls under the scope of the policy, the following steps should be followed:
- Take all necessary steps to minimize the loss.
- Immediately notify the insurance company by phone, email, fax or in writing.
- Obtain estimate of repair from repairer of your choice.
- Submit this repair estimate along with a duly filled in Claim Form to the Surveyor assigned by the insurance company.
- After getting clearance from the surveyor, proceed by repairing the machine or rdering a replacement as the case may be.
- Submit actual bills of repair/replacement with proof of payment to the Surveyor.
Note: Policy details given are indicative, not exhaustive. Please contact your nearest FICO office for further details.