The owners of the plant and machinery. Financier interest if any involved is preserved by including it as a joint name.

This policy shall cover any unforeseen and sudden physical damage to the property by any cause not specially excluded. This policy shall apply to the insured item whether:

• They are at work
• or at rest
• or being dismantled for the purpose of cleaning or overhauling
• or when being shifted within the premises
• or subsequent re-erection.

 

Partial loss 

Full cost of replacement of parts plus repair charges, cost of dismantling and re-erection. Depreciation is applied only for the parts with limited life. If the repair works are undertaken by the insured, actual material and labour costs plus a reasonable quantum of overheads is payable. Salvage is deducted. If the suminsured is not adequate, policy pays only proportionately.

Total loss

The actual market value of item immediately before the occurrence of loss, less salvage and depreciation subject to adequacy of suminsured

In both cases freight and customs duty are also paid if they are included in suminsured. Policy excess is deducted from the claim.

Loss or damage due to: -

1. Electrical or mechanical breakdown or boiler explosion .
2. Replaceable parts like bits, knives, ropes & bolts, chains etc., wear and tear, corrosion, damage whilst in transit, war and nuclear perils.
3. When undergoing test or while used for a purpose different from what was originally intended .
4. Damage due to accidents to carrying vehicle /train/vessel/and craft.
5. Damage to plant&machinery working underground .
6. Contractual liability, consequential loss, existing defect, inventory loss.